Page 45, Counts 15-24: Corrupt Receipt of Bribe/reward For Official Action Concerning Programs Receiving Federal Funds 18 USC 666

Case 3:09-cr-00272-EMK Document 1-2 Filed 09/09/09 Page 1 of 78
Page 45, Counts 15-24: Corrupt receipt of bribe/reward for official action
concerning programs receiving federal funds 18 USC 666
UNITED STATES D I S TRICT COURT
FOR THE MIDDLE D I STRICT OF PENNSYLVANIA
UNI TED STATES OF AMERICA

v.
MI CHAEL T. CONAHAN and
MARK A. CIAVARELLA, JR.,
D e f endants.
FILED
I N D I C T M E N T
Count 1
HARRRI JRti.
SP 9-
PA
2009
18 u . s . c . 1 9 6 2 ( c )
{Racketeering )
THE GRAND JURY CHARGES:
A. THE PARTIES
1.
At a l l t ime s material to thi s Indi c tment, the de f endants
MICHAEL T .
CONAHAN and MARK A .
C IAVARELLA, JR. were j udge s of the
Court of Common P le a s f or Lu z e rne County, Pennsylvania.
Be tween
approximately January of 20 0 2 and January o f 20 0 7 , M I CHAEL T.

CONAHAN s e rved as Pre s ident Judge f or Luz erne County.
Between
approxima t e l y 1 9 9 6 and Novembe r of 20 0 8, MARK A. C IAVARELLA, JR .

s e rved as Judge o f the Juven i l e Court f or Luz e rne County.
In
approxima t e ly January of 20 0 7 , MARK A. C IAVARELLA, JR. was named

Pre s ident Judge f or Luz e rne County .
2.
As j udge s o f the Court o f Common P l eas, the de f endants
MI CHAEL T. CONAHAN and MARK A. C IAVARELLA, JR. owed a f idu c i ary

duty to the c i t i z ens o f the Commonwea l t h of Pennsylvan i a and to
the Judic i ary of the Commonwea l th of Pennsylvani a and were
required to file an annual statement of financial interests with

the Administrative Office of the Pennsylvania Courts,
the source of any income,
direct or indirect.
reporting
The Administrative
Office of the Pennsylvania Courts maintains a number of offices,

including an office in Philadelphia County,
Eastern District of
Pennsylvania.
B.
3.
THE ENTERPRISE
At all times material to this Indictment,
Common Pleas for Luzerne County,
the Court of
part of the Judicial Branch of
the government of the Commonwealth of Pennsylvania,

established by Article
of the Pennsylvania Constitution
the Pennsylvania Judicial Code,

defined in Title
18,
4.
11the Enterprise11 ) .
JR.
The Enterprise
interstate commerce.
THE PURPOSE OF THE DEFENDANTS
The defendants MICHAEL T.
CIAVARELLA,
by
Section 1961(4)
and its activities affected,

C.
and
constituted an "enterprise" as
United States Code,
(hereinafter referred to as
was engaged in,
as
CONAHAN and
MARK
A.
abused their positions within the Enterprise to
enrich themselves by improperly taking payments and other things

of value from individuals and organizations doing business with
the enterprise.
D.
5.
MEANS AND METHODS OF THE DEFENDANTS
Between approximately June of 20 0 0 and January 1,
the defendants MICHAEL T.
CONAHAN and
MARK
A.
CIAVARELLA,
2007,
JR.
abused the i r po s i t i ons wi thin the enterpri s e and v i o lated the

f iduc i ary duty they owed to the c i t i z ens o f the Commonwea l t h of
Pennsylvania and to the Jud i c iary o f the Commonwea l th of
Pennsylvania by s e c re t ly deriving more than $2, 800, 000 in income,
in add i t ion to the compensa t i on to whi c h they were l awful ly
ent i t l e d, in exchange f or the i r of f i c i a l a c t ions and ant i c ipated
o f f i c ia l ac t i ons .
The a c t i ons f rom which they derived improper
income inc luded, but were not l imi ted to :
entering into
agreement s guarantee ing p l acement of j uveni le o f f enders with PA

Chi ld Care, LLC
( hereina f t e r r e f e rred to a s
We s t ern PA Child Care, LLC

PA Chi l d Care ) ;
" PA Chi ld Care " )
( hereina f t e r re f e rred to as
and
"We s tern
taking o f f i c i a l act ion to remove funding f rom the
Luz e rne County Court budge t for the Luz erne County j uveni le
detent i on f a c i l i ty, e f f ec t ive ly c los ing the county - run youth
detent ion c ente r ;
f ac i l itat ing the constru c t ion of j uveni l e
de tention f ac i l i t i e s and a n expans ion t o one o f tho s e f a c i l i t i e s

by PA Chi ld Care and We s t e rn PA Chi ld Care ;
dire c t ing that
j uven i l e of f enders be lodged at j uveni le de tent i on f ac i l i t ies

ope rated by PA Chi ld Care and We s tern PA Chi ld Care ;
summari ly
grant ing mot i ons to seal the record and for inj unc t ive r e l ie f in
a c ivil c a s e related to PA Chi l d Care ;
and, through the i r
ac t ions, as s i s t ing P a Chi l d Care and We s t e rn PA Chi l d Care to

secure agre ement s with Luz e rne County worth tens of mi l l i ons of
do l lars for the p l a c ement of j uveni l e o f f enders, inc luding an
agreement i n late 2 0 0 4 wort h approximately $58, 0 0 0 , 0 0 0 .

6.
The de f endant s employed a number of s chemes i n an
a t t empt to hide the income they rec e i ved including,
but not
l imi ted to, caus ing income in the form of c a s h, checks and wire
t rans fers to pa s s through intermediar i e s and c aus ing f a l s e
records to be c reated .
7.
In approxima t e ly June o f 20 0 0 ,
t he de f endant MARK A .
CIAVARELLA, JR. , whos e dut i e s then inc luded pre s i ding over
juveni l e proceeding s as a judge of the Court o f Common Pleas for
Luz e rne County, had d i s cus s ions with an a t torney who had a law
prac t i c e in Luzerne County, he reinaf t e r re f e rred to as
" PARTICI PANT #1 , " who was intere s ted i n cons t ruct ing a juvenile
de tent ion f ac i l i ty in Luzerne County .
CIAVARELLA, JR .
De f endant MARK A .
int roduced PART I C IPANT #1 to a contractor
( here inaf t e r ref erred t o as " PARTICI PANT #2")

de fendant MARK A .
who was a f riend of
C IAVARELLA, JR. , for the purp o s e o f locat i ng
land for the juveni le f ac i l i ty and for cons t ruc t i ng the f ac i l i ty.
8.
PARTI C I PANT #1 and another person, do i ng bus ine s s as PA
Chi l d Care ,
acquired l and i n Luz e rne County and ent ered i nto an
agre ement with PARTI C I PANT #2 to cons t ruc t a juveni l e de tent ion
c enter to be operated by PA Chi l d Care .
9.
On or about January 29 , 20 0 2 ,
de f endant MI CHAEL T .
CONAHAN, ac t ing in h i s c apac i ty as Pres ident Judge o f Luz erne

County, s i gned a " P lac ement Guarantee Agreement " be tween PA Chi l d
Care and the Court o f Common P l eas for Luz erne County to house
juven i l e o f f enders at the PA Chi ld Care f ac i l i ty.
The " P l acement
Guarantee Agreement " provide d that the Court o f Common Pl eas for
Luzerne County would pay PA Chi ld Care the annual
Ins tal lment "
" Rental
sum of $1 , 314 , 000 and s t ipulated that "[t]he
obl igat ion o f the Court to make payment o f the Rent al

Ins tal lment s sha l l be abs o lute and uncond i t ional. "
10.
In or about December, 2002, de f endant MI CHAEL T .
CONAHAN, act ing in his capa c i ty as Pres ident Judge of Luzerne

County, took o f f i c ial act ion to remove funding f rom the Luzerne
County Court budge t for the Luzerne County juvenil e detent ion
f ac i l i ty .
The prac t i c a l e f f e c t o f thi s a c t ion was to c lo s e the
Luz e rne County youth detent i on center .

11 .
In or be fore January of 2003, de f endant MICHAEL T .
CONAHAN and de f endant MARK A .
CIAVARELLA, JR .
arranged to receive
a payment in the amount of $9 9 7 , 6 00 in conne c t ion with the roles

they p l ayed as judge s in accomp l i shing the c ons t ruct ion o f the PA
Chi ld Care juveni l e de t ent ion fac i l ity .
12 .
In order to c onc eal the $9 9 7 ,6 00 payment to de f endants
CONAHAN and CIAVARELLA, JR . , PARTI C I PANT #1 and PARTICI PANT #2

s igned a wri tt en " Regi s tra t ion and Commi s s ion Agreement " prepared
by PARTI C I PANT #2 and backdated to February 1 9 , 2002, whi ch
purported to be an agreement f or PART ICI PANT #2 t o pay a broker ' s
fee of $9 9 7 , 6 00 to PARTI C I PANT #1 .
I n f a c t, however, a large
port ion of
the money was paid to def endants MI CHAEL T.
and MARK A.
1 3.
CIAVARELLA ,
MICHAEL T.
CONAHAN
JR.
CONAHAN and MARK A.
CIAVARELLA, JR.
engaged
in a s eries of f inanc ial transa c t i ons, over t ime, des igned to

conc eal the $9 9 7 , 6 0 0 payment made to them.
On January 21,
20 0 3,
$6 1 0, 0 0 0 wa s wire t rans f erred by PARTICI PANT #2 t o an attorney

trus t account of an attorney o ther than PARTI C I PANT #1 .
The
remaining $387 , 6 0 0 was wire trans f erred by PART I C I PANT #2 to a

bank account under the control of PARTICI PANT #1.
14 .
Thereaf t e r, on January 28,
20 0 3, the $6 1 0 , 0 0 0 in the
attorney t rus t account was wire trans ferred t o a bank account of

Beverage Marke t ing o f PA, Inc . , a bus ine s s ent i ty c ontrol led by
de fendant MI CHAEL T.
15 .
CONAHAN.
- - -
I n a s e r i e s of f inanc ial t ransac t ions thereaf t er, a
por t i on of the $6 1 0 , 0 0 0 payment was passed from de f e ndant MI CHAEL

T.
CONAHAN to defendant MARK A.
or about January 28,
20 0 3,
CIAVARELLA, JR.
For examp l e, on
the de f endant M I CHAEL T.
CONAHAN
directed that $33 0 , 0 0 0 of the $6 1 0 , 0 0 0 be wire t rans f erred to a

bank account contro l led by the de f endant MARK A.
on or about Apr i l 3 0 ,
20 0 3,
CIAVARELLA, JR. ;
the de fendant MI CHAEL T.
CONAHAN
direc t ed that an add i t i onal $7 5 ,0 0 0 o f the $6 1 0 , 0 0 0 be wire

trans f erred to a bank account contro l l e d by the def endant MARK A.
CIAVARELLA, JR . ;
T.
on or about July 1 5 ,
20 0 3,
the de f endant MI CHAEL
CONAHAN dire c t ed that an add i t ional $7 5 , 0 0 0 o f the $6 1 0, 0 0 0
wire t rans f e rred to a bank account under the control of the

de fendant MARK A .
CIAVARELLA ,
the de f endant MI CHAEL T .
JR. ;
on or about Augus t 1 3 , 2 0 0 3 ,
CONAHAN direc ted that an addi t i onal
$ 2 5 ,0 0 0 of the $ 6 10 ,0 0 0 be wire trans ferred to a bank account

under the control o f a third party;
2 0 0 3 , the de f endant MI CHAEL T.
and ,
on or about August 2 0 ,
CONAHAN dire cted that an
addi t ional $ 1 0 5 ,00 0 o f the $ 6 1 0 ,0 0 0 be trans ferred to a bank

account under the control of
16.
the de fendant MI CHAEL T.
CONAHAN.
T o conc e a l the p ayment s to de fendant s MI CHAEL T.
CONAHAN and MARK A.
CIAVARELLA ,
JR. ,
de f endant MI CHAEL T .
CONAHAN
dire c t ed that fals e entrie s be made in the books and re c o rds of

Beverage Marke t i ng o f PA ,
17.
T.
Inc .
T o f urther conceal the $9 9 7 , 6 0 0 pa yrt1 nt
CIAVARELLA ,
JR.,
-c:
M Il1AEL
a port i on of the $ 3 8 7 ,6 0 0
wire t rans f er made by PARTI C I PANT #2 to PART I C I PANT #1 o n January

2 8 , 2 0 0 3 , was paid to the de fendants MI CHAEL T.
A.
C IAVARELLA ,
JR.
CONAHAN and MARK
in a seri es of f inanc ial trans ac t ions which
oc curred over t ime.
One o f those trans act ions oc curred on or
about Augu s t 2 9 , 2 0 0 3 , when a check i n the amount o f $ 3 2 6 ,0 00 ,

drawn on a bank a c c ount unde r the c ontrol o f PART I C I P ANT #1 was
depo s ited int o a bank account mai ntained in the name of the wife
o f de f endant M I CHAEL T .
de f endant M I C HAEL T .
18 .
CONAHAN and under the c ontrol o f the
CONAHAN .
Due to the suc c e s s o f the juveni le det ent ion f ac i l i ty
operated in Luz e rne County ,
PARTICIPANT #1 and h i s partner ,
bus ine s s as We s t e rn PA Chi ld Care ,
doing
cons t ructed a juven i l e
detent i on fac i l i ty i n we stern Pennsylvan i a .
PARTI C I PANT #2,
same cont rac tor who bui l t the f ac i l i ty in Luz erne County ,
was
employed to c ons t ruct the Wes t e rn PA Chi l d Care f ac i l i ty.
In
July o f 2005,
upon comp l e t ion o f c ons t ruc t ion ,
payment was made t o defendant s MICHAEL T .

CIAVARELLA ,
19.
JR .
the
a $ 1, 000, 000
by PARTICI PANT #1 .
I n order t o conceal the payment t o defendants CONAHAN
and CIAVARELLA,
JR . ,
PARTI C I PANT #1 and PART I C I PANT #2 s igned a
wri tten "Regi s t ra t i on and Comm i s s ion Agreement " prepared by

PARTI C I PANT #2 whi c h purported to be an agreement for PARTI C I PANT
#2 to p y a broke r ' s f e e of $ 1 , 000, 000 to PARTI C I PANT #1.
fac t ,
however ,
the money was w i re tran s f e rred by PARTI CI PANT #2
to a bank ac count o f the Pinna c l e Group o f Jup i te r ,

bus ine s s ent i ty owned by the wives of MI CHAEL T.
A.
C IAVARELLA ,
20.
LLC ,
CONAHAN and MARK
JR .
PARTI C I PANT # 1 and h i s partner ,
Chi ld Care ,
In
do ing bus ine ss as PA
cons t ruc ted an add i t ion to the juveni l e detent ion
fac i l ity in Luz e rne County .
PARTI C I PANT #2,
the s ame cont ractor
who bui l t the f ac i l i ty , was employed to comp l e te the expan s i on

project and ,
i n February o f 200 6 , upon comp l e t ion o f cons t ruct ion
of the addi t ion ,

MICHAEL T.
a $ 1 5 0,000 payment was made to de f endant s
CIAVARELLA ,
JR .
21 .
In o rde r to conceal the payment to de fendant s CONAHAN
and CIAVARELLA ,
JR . ,
PARTICI PANT # 1 and PARTI C I PANT # 2 s i gned a
wr i t t e n " Regi s t rat i on and Comm i s s ion Agre ement" prepared by

PARTI C I PANT # 2 whi ch purported to be an agreement f o r PARTICIPANT
#2 t o pay a broker's f e e of $1 5 0 , 000 to PART I C I PANT # 1 .
howeve r ,
In f ac t ,
the money was wire trans ferred by PART I C I PANT # 2 to a
bank account o f the Pinnacle Group of Jupi t e r ,

en t i t y owned b y the wive s o f MI CHAEL T.
CIAVARELLA ,
22 .
LLC ,
a bus ine s s
CONAHAN and MARK A.
JR .
In approximate l y February of 2 003 ,
when cons truct ion o f
the PA Child Care juvenile de tention f acility was compl e t ed ,

de fendant MARK A.
C IAVARELLA ,
JR . ,
in h i s capacity as a juveni le
co 11:r:_t juge, })e g:an di rect i!lg that youthful o f f E:_!1de r s be sent to
that faci l i ty .
January 1 ,
Betwe e n approximate l y February of 2 003 and
2 007 ,
CIAVARELLA ,
JR .
the de f endant s MI CHAEL T .
demanded and rece ived f rom PARTICI PANT #1
hundreds o f thous ands o f do ll ars in payment s for the i r pa st and

ant icipated future o f ficial act i ons re lating to PA Chi l d Care and
We s t e rn PA Chi l d Care and took s t eps to conce a l and disgui s e the
nature ,
l ocat i on ,
s ource ,
owne rship and cont rol o f the money pa id
by PARTI C I PANT # 1 .
23 .
Some of
the payment s we re made by checks drawn on one
or mo re bank accounts unde r the control of
PARTI C I PANT #1 and
were made payable to the P i nnacle Group of Jupi t e r ,
LLC .
The
payment s inc luded, but were no t ne c e s s ar i ly l imited to, the

fol lowing :
$ 1 8,000 paid on or about January 1 3,
paid on or about January 1 3, 2004 ;

February 1 5 , 2004 ;
2004 ;
$ 5 2, 000
$ 7 8,000 paid on or about
$ 7 5 , 000 paid on or about February 1 5 ,
$ 4 7 ,000 paid on or about February 15,

about April 30, 2004 ;
2004 ;
2004 ;
$ 7 5 ,000 paid on or
and $ 2 5 ,000 paid on or about Apr i l 30,
2004 .
24 .
To conc e a l the payment s to de f endant MI CHAEL T .
and de fendant MARK A .
CONAHAN
CIAVARELLA, JR . , PART I C I PANT #1 made false
no tat ions on the c hecks and de f endant MICHAEL T .
CONAHAN directed
that f a l s e ent r i e s be made in the books and records of P innacle

Group of Jup i t e r, LLC and Beverage Marke t ing o f PA, Inc.
25 .
s ome Qf_ the
In addi t ion
were made by wire t ran s f ers made f rom one or more bank accounts
under the c ontrol o f PARTICI PANT #1 and were t ran s f e rred to an
account under the c ont ro l of t he P innac l e Group of Jupiter, LLC .
The payment s inc luded, but were not ne c e s s ar i ly l imi t ed to, the
f o l l owing :
$ 120,000 trans f e rred on July 12,
2004 ;
and $ 100, 000
trans ferred on S ep tember 23, 2004 .

26 .
Addi t ional payments to t he de f endan t s f rom PARTICI PANT
#1 were cash paymen t s .
Those c a s h payment s inc luded, but were
not ne ce s sa r i l y l im i ted to, the f o l l owing:

about Augus t 1 6 ,
2006 ;
$ 4 2,000 paid on or
$20,000 paid on or about November 1,
$ 5 0 , 000 paid on or about November 20, 2006 ;
10
2006 ;
$ 31, 5 00 paid on or
about Dec ember 1 8 , 2 0 06 .

27 .
In order to conceal the more than $2,8 0 0 , 0 0 0 in
unlawful payment s they received , the def endants MICHAEL T .

CONAHAN and MARK A . CIAVARELLA , JR . knowingly and intent ional ly
f i led mat erially false annual statement s o f f i nanc ial intere s t s
with the Admini s t rat ive O f f i c e o f the Penn sylvania Courts i n
which they f a i l ed to d i s c lose the s ource o f the s e payment s and in
whi c h they fai led to d i s c lose their f inanc ial relat ionship with
PARTICIPANT #1 , PARTICIPANT #2 , PA Chi l d Care and Wes tern PA
Chi ld Care , a l l of which were material mat ters .
E.
28 .
THE PATTERN OF RACKETEERING ACTIVITY
The pat t ern o f racketeering act ivity , as de f ined in
which the de f endant s c onducted and part i c ipated in the conduct o f

the a f fairs o f the enterpri s e ,
inc luded the f o l lowing
racke teering ac t s , among others :

a.
Ac t One
- W ire Trans f e rs
Made In Conne c t ion W i th Cons truction
of PA Chi ld Care Juveni l e Detent ion
2 9.
Be tween on or about June o f 2 0 0 0 and on or about
January 1 ,
2 0 0 4 , the exact dat e s be ing unknown ,
in the Mi ddle
D i s trict of Pennsylvania , and e l s ewhere , the de f endant s MICHAEL

T. CONAHAN and
MARK
A.
CIAVARELLA , JR . dev i sed and int ended to
devi s e a material scheme and art i f i c e to de fraud and deprive the

Judi c i ary o f the Commonwealth of Penn sylvania and the c i t i z ens o f
11
the Commonwealth o f Penn sylvania o f the ir rights to the hone s t

servi c e s o f MI CHAEL T .
CONAHAN and MARK A CIAVARELLA, JR. ,
perf ormed f ree f rom dec e i t ,
f avori t i sm, bias, s e l f - enrichment,
se l f - deal ing, c oncealment, and conf l i c t s of int e r e s t .

30.
The de f endants MICHAEL T.
CONAHAN and MARK A.
CIAVARELLA, JR. , together w i th other p e rsons known and unknown,

commi tted the f o l l owing ac t s, any one o f which alone c ons t i tut e s
Racke teering Ac t One.
i.
31 .
RACKETEERING ACT 1 . 1
On or about January 21 ,
2003,
for the purpos e o f
execut ing t h e s cheme and art i f i c e to de f raud and deprive the

c i t i zens of Luz e rne County and the Commonwea l th o f Pennsylvania
-
e f.--t he :i.-r
r-i 9-ht--t-e-1;-he-nene s &- - s -e FVi Ge - s -e-f - -t.ne --GI.-e fe-nda nt-S-,- tJ:e-
de fendants M ICHAEL T.
CONAHAN and MARK A.
CIAVARELLA, JR.
knowingly t ransmi t t ed and c aused t o be transmi t t e d by means of

wire communi cat ion in inter s tate o r f oreign commerce a wire
trans f e r of $6 10, 000 to an attorney e s c row bank account, in
violat ion of T i t l e 1 8 ,
ii .
32 .
Uni t ed S t a t e s Code, 2,
1 3 4 3 and 1 34 6 .
RACKETEERING ACT 1 . 2
On or about January 24 ,
2003, for the purp o s e o f
executing the s cheme and art i f ice to de f raud and deprive the
c i t i z ens of Luz e rne County and the Commonwea l th o f Pennsylvania
of the i r r i ght to the hone s t s ervi c e s of the de f endants, the
defendant s M ICHAEL T.
CONAHAN and MARK A.
12
CIAVARELLA, JR .
- -
knowingly transmitted and caused to be transm i t t e d by means o f

wire communi cat ion i n interstate o r fore ign c ommerce a wire
tran s f er o f $387 , 6 00 to an attorney bank a c c ount,
Tit l e 1 8, Uni te d S t a t e s Code , 2 ,
July 1 5 ,
134 3 and 1 34 6 .
Act Two
Made to Conahan and C i avare l la In
Connec t i on With Construc tion o f We s tern PA Chi ld
Care Juveni l e Detention
b.
33 .
in violation o f
Between on or about January 1, 2004 and on or about

200 5 ,
the exac t dates be ing unknown,
i n the Midd l e
D i s t ri c t of Pennsylvania, and e l s ewhere, the de f e ndants M ICHAEL

T.
CONAHAN
and
MARK
A.
CIAVARELLA, JR.
dev i s e d and intended to
dev i s e a mat e r i a l s cheme and art i f ic e to de f raud and deprive the

Jud i c iary o f the Commonweal th of Pennsylvani a and the c i t i z ens of
--
- --
--
----
----
---
-- ----------
----
the Commonwea l t h of Pennsylvania o f the ir r i gh t s to the hone s t

s ervi c e s of MICHAEL T .
CONAHAN and MAR K A C IAVARELLA, JR . ,
performed free f rom dec e it,
favori t i sm, b ias,
s e l f - enrichment,
s e l f-deal ing, c onc e alment and conf l i c t s of intere st.

34 .
On or about July 15 ,
200 5 , f or the purpose of execut i ng
the scheme and art i f ic e to def raud and deprive the c i t i z ens of
Luz e rne County and the Commonwealth of Pennsylvania of t he i r
right t o the hone s t s e rvi c e s o f the def endan t s , the de fendant s
MI CHAEL T . CONAHAN and MARK A .
C IAVARELLA ,
JR .
knowingly
transmi t ted and caused to be t ransmi t ted by mean s of wire

communicat ion i n inters tate o r f ore ign commerce a wire t rans fer
of $1, 000, 000 to a bank acc ount o f the Pinnac l e Group of Jup i ter,
13
LLC ,
in vio lat i on o f Tit l e 18, Uni ted States Code, 2, 134 3 and
134 6 .
c.
With
35 .
Ac t Three
of
Made to Conahan and C i avare l la I n Connec t i on
o f PA Chi ld Care Juveni l e De tent ion
From on or about January 1, 20 0 5 to on or about
February 3, 20 0 6 , the exact dates be i ng unknown, in the Middle

D i s t r i c t o f Pennsylvani a, and e l sewhere, the de f e ndants M ICHAEL
T.
CONAHAN and MARK A. CIAVARELLA ,
JR.
devi s e d and i ntended to
dev i s e a material scheme and art i f ice to de f raud and deprive the
Judi c iary o f the Commonwealth of Pennsylvania and the c i t i z ens of
the Commonweal th o f Pennsylvania o f their righ t s to the hone s t
serv i c e s o f MI CHAEL T .
CONAHAN and MAR K A CIAVARELLA, JR.,
performed f ree f rom dec e i t , favor i t i sm ,

se l f - de a l ing, c onc ealment ,
36 .
b i as ,
and conf l ic t s of intere s t.
On or about February 3 , 20 0 6, f o r the purpose o f
executing the s c heme and art i f ic e t o de f raud and deprive the

c i t i z ens of Luz erne County and the Commonwea l t h o f Pennsylvania
of the i r ri ght to the hone s t services of the de f e ndant s ,
de fendants M ICHAEL T .
CIAVARELLA ,
the
JR .
knowingly transm i t ted and c aused to be transm i t t e d by means of

wire communicat ion in interstate or f oreign commerce a wire
trans f e r of $ 15 0 , 0 0 0 t o a bank account of the Pinnac l e Group of
Jupiter, LLC ,
in violation of T i t l e 18, Uni t e d S tates Code , 2,
134 3 and 134 6 .

14
Act Four -
d.
Paid to Conahan and
Ciavarel la On
37 .
T.
In furtherance of the o f fense ,
acts ,
CIAVARELLA ,
JR. ,
the de fendants MI CHAEL

commi tted the fol lowing
any one of which alone constitutes Rackete er ing Act Four .

RACKETEERING ACT 4.1 ( Extortion Unde r Co lor of Of f icial
Right - Checks Tota l i ng $ 7 0 , 000)
i.
On o r about January 2 0 ,
3 8.
of Pennsylvania,
and MARK A .
and e l s ewhere ,
CIAVARELLA ,
wi l f u l l y a f f ect,
JR .
2 004 ,
in the Middle D i s trict
the de fendants MI CHAEL T .
did knowingly ,
and attempt to a f fect ,
CONAHAN
intenti onally and
inters tate commerce and
the movement of art i c l e s and commodi ties in commerce by

extortion ,
as tho s e terms are de f ined in Title 18 , United States
]_;_ tl].a_t i s ,
__
A.
CIAVARELLA, JR .
th cl e _f:Qdapts MI I:mEL 'I'.
obtained property f rom anothe r ,
check s total ing $ 7 0 , 000 ,
two
not due the de f endants or the i r
with that othe r's cons ent ,
unde r co lor of o f f i cial ri ght ,
in vio lation of Title 18 , United State s Code ,
19 5 1 .
ii .
RACKETEERING ACT 4 . 2 (Bribery Chargeable Under State

Law - Checks Total ing $ 7 0 , 000)
39 .
On or about January 2 0,
Pennsylvania ,
and MARK A .
is ,
name l y ,
which we re payabl e f rom a bank account
contro l l ed by PART I C I P ANT # 1 ,

o f f i ce ,
C P:t'f <;!.nd K
and e l sewhere ,
C I AVARELLA,
JR .
in the Midd l e D i s tr i ct of
the de fendants MI CHAEL T .
CONAHAN
did knowi ngly commit bri bery ,
the de fendants s o l icite d ,
anothe r ,
2 004 ,
that
accepted and agre ed to accept f rom
name ly PART I C I PANT #1 ,
monetary bene f its ,

15
to wi t ,
two
checks t otaling $7 0 ,0 0 0 , which were payab le f rom a bank account

contro l l ed by PARTI CI PANT # 1 ,
as cons iderat i on for v i o l at ions o f
known l e g a l dut i e s o f the de f endant s a s pub l i c s e rvan t s ,

v i olat ion o f Ti t l e 1 8 ,
T.
4 7 0 1 (a) ( 3 ) .
e.
Act Five
C i avar e l l a Betwe en
40 .
I n furthe rance o f the o f f ense ,
acts ,
Pa.C . S .
in
Paid to Conahan and

2 0 0 4 and
CIAVARELLA ,
JR . ,
the de f endant s MI CHAEL

comm i t t ed the f o l l owing
any one of which al one cons t i tu t e s Racketee ri ng Act Five .

i.
RACKETEERING ACT 5 . 1 ( Extort i on Under Color o f O f f icial

Ri ght - Checks To taling $2 0 0 , 0 0 0 )
Between on or about February 15,
41.
February 2 4 ,
e l s ewhe re ,
2004 ,
JR .
and o n or about
in the Middle D i s trict of Penns ylvania ,
t he de f endants MI CHAEL T .
CIAVARELLA ,
2004
did knowingl y ,
and at tempt to a f f e ct ,
int entiona l l y and w i l f u l l y af fe ct ,
inters ta te commerce and the movement of
art icl e s and commodi t i e s in commerce by extor t i o n ,

are de f i ned in Ti t l e 1 8 ,
de f endant s M I CHAEL T .
Un i t e d S t a t e s Code ,
CONAHAN and MARK A.
obta ined property from ano the r ,
name l y ,
as t hose terms
1 95 1 ;
t hat i s ,
CIAVARELLA ,
three che ck s t o t a l ing
whi ch were payab l e f rom a bank account o f V i s ion
Holdings ,
Inc .
contro l l ed by PART I C I PANT # 1 ,
defendant s o r t he i r o f f ice ,
co lor of o f f icial r i ght ,
not due t he
w i th t hat other's consent ,
in v i o lat i on o f Ti t l e 1 8 ,
19 51 .
16
the
JR .
$2 0 0 , 0 0 0 ,
Code ,
and
under
Uni t ed S t at e s
ii .
RACKETEERING ACT 5. 2 ( Bribery Chargeab l e Under S t a t e

Law - Checks Total ing $20 0 , 0 0 0 )
42.
Between on or about February 1 5 , 2 0 04 and on or about
February 24 , 20 0 4 , in the Middle D i s t ri c t of Pennsylvania, and

e l s ewhere, the def endants MICHAEL T .
CIAVARELLA, JR.
did knowingly c ommit bribery, that i s , the
de fendant s s ol i c i t e d, accepted and agreed to a c c ept f rom another,

namely PART I CIPANT #1,
mone tary bene f i t s, to w i t, three c he cks
total ing $200,0 0 0, whi ch were payab le f rom a bank account o f

Vis ion Ho ldings , Inc .
control l ed by PART I C I PANT #1,
as
cons iderat i on f or violat ions of known l egal dut i e s of the

de f endants as pub l i c s e rvants, in vio l at ion of T i t l e 18, Pa . C . S .
4 70 1 ( a ) ( 3 ) .
T.
f.
Ac t S ix C i avarel la on Or About
43 .
In f urthe rance of the o f f ense, the de fendants MICHAEL
CONAHAN and MARK A.
Paid t o Conahan and
CIAVARELLA, JR . , commi t ted the f o l lowing
acts, any one o f whi ch alone cons t i tutes Racke t e e ring Ac t S ix.
i.
RACKETEERING ACT 6 . 1 ( Extort ion Under Color of O f f i cial

Right - Chec k s Total ing $ 10 0, 0 0 0 )
44 .
On or about Apr i l 3 0 , 20 04, in the Middl e D i s tr i c t o f
Pennsylvania, and e l s ewhere, the de f endants MI CHAEL T . CONAHAN

and MARK A .
CIAVARELLA ,
JR.
did knowingly ,
wi l fully a f f e c t , and a t tempt to a f f ec t ,
intent iona l ly and
int e r s tate commerce and
the movement o f art i c l e s and c ommod i t i e s in c ommerce by

extort ion, a s tho s e t e rms are de f i ned in T i t l e 18, United States
17
Code,
A.
1951 ;
CIAVARELLA,
that i s ,
JR .
the de f endants MI CHAEL T.
CONAHAN and MARK
obt ained property f rom another,
name ly,
two
che cks tota l i ng $ 10 0 , 0 0 0 , which were payabl e f rom a bank ac count

o f Vis ion Hol dings,
Inc .
c ontro l l e d by PARTICI PANT #1, not due
the de f endant s or the i r of f i c e ,
wi th that other ' s cons ent, under
color o f of f i c i a l r i ght, in violat ion of T i t l e 18, Uni ted States

Code,
1951 .
ii .
RACKETEERING ACT 6 . 2 ( Bribery Chargeabl e Under S tate

Law - Checks Tot a l ing $ 1 0 0 ,0 0 0 )
45 .
On or about Apr i l 3 0 , 20 0 4 , in the Middle D i strict of
Pennsylvania,
and MARK A .
i s,
and e l s ewhere ,
CIAVARELLA ,
JR.
the defendant s MICHAEL
CONAHAN
di d knowingly comm i t bribery,
the de f endant s s o l i c i t ed,
another,
T.
that
accepted and agreed to accept f rom
name ly PART I C I PANT #1, mone tary bene f i t s ,
to wit,
two
che cks tota l i ng $ 1 0 0 , 0 0 0 , which were payabl e f rom a bank account

o f Vis ion Holdings, Inc .
c ontrolled by PARTICI PANT #1, as
cons iderat ion for viol at ions of known legal dut i e s of the
de fendant s as pub l i c s e rvant s ,
in viol at i on of T i t l e 18, Pa . C . S.
4701 (a) ( 3 ) .
g.
4 6.
T.
Ac t S even
and Ciavare l l a on
In furthe rance o f the o f fense,
CIAVARELLA,
JR. ,
Paid to Conahan
the de f endants MICHAEL

c ommi t t e d the f o l l owing
acts, any one o f which alone cons t i tut e s Racke t e e ring Ac t Seven.
i.
RACKETEERING ACT 7.1 ( Extort ion Unde r Co lor of O f f i c i a l

Right - Wire Trans f e r o f $ 12 0 , 0 0 0 )
18
On or about July 1 2, 2 0 0 4 ,
47 .
Pennsylvania,
and MARK A .
and e l sewhere,
CIAVARELLA,
w i l ful ly a f f e c t ,
JR .
in the Middle D i s t r i c t of
the de f endants MICHAEL T .

did knowingly,
and attempt to af f e c t,
CONAHAN
int ent ional ly and
int e r s t ate c ommerce and
the movement of art i c l e s and commodi t i e s in commerce by

extort i on,
Code,
A.
as t ho s e terms are de f i ned in T i t l e 1 8,
1 951 ;
CIAVARELLA,
that is,
JR .
the
Inc .
color o f of f ic ia l right,
a wire
c ontro l led by PARTI C I PANT #1,

with that
not due
othe r's consent ,
in v i o l a t ion of T i t l e 1 8 ,
unde r
Uni ted States
1 951 .
ii .
RACKETEERING ACT 7 . 2 ( Br ibery Chargeab l e Under State

Law - Wire Trans f e r o f $ 1 20,0 0 0 )
48.
On o r about July 1 2 ,
Pennsylvania,
and MARK A .
is,
name ly,
which wa s t rans f erred from a bank account
de f endants o r the ir o f f ic e ,
Code,
CONAHAN and MARK
obt ained property f rom another,
t rans f e r of $ 1 2 0 , 0 0 0 ,
o f Vis i on Holdings,
the de fendants MICHAEL T .
Uni ted States
and e l s ewhere,
CIAVARELLA,
JR.
o f Vis ion Holdings ,
CONAHAN
did knowingly c ommi t bribery,
that
a c c epted and agreed to a c c ept from
name ly PARTI C I PANT # 1 ,
t rans f e r of $1 2 0 , 0 0 0 ,
the defendant s MI CHAEL T .
the de f endant s sol i c i ted,
another,
2004 ,
monetary bene f i t s,
to wi t ,
a wire
which was trans f erred f rom a bank account
Inc .
contro l le d by PART I C I PANT #1,
as
cons iderat i on for v i o l a t i ons o f known legal dut i e s o f the

def endants as pub l i c s e rvant s ,
in violat ion of T i t l e 1 8,
4 70 1 ( a ) ( 3 ) .
19
Pa . C. S .
T.
Paid to Conahan and
h.
Ac t
C i avare l l a on
4 9.
In furtherance of the o f f ens e, the de f endant s MICHAEL
CIAVARELLA, JR . , comm i t ted the fol lowing
ac t s, any one o f which alone cons t i tute s Racke t e e ring Ac t Eight .

i.
RACKETEERING ACT 8 . 1 ( Extort i on Unde r Color o f O f f ic ial

Right - Wire Tran s f e r o f $100,000 )
On or about September 23 ,
SO.
20 0 4 ,
in the M i ddle
D i s t r i c t of Pennsylvania, and e l s ewhere, the de fendants MI CHAEL

T . CONAHAN and MARK A .
CIAVARELLA, JR .
did knowingly,
intent iona l ly and w i l f u l ly a f f ec t, and attempt to a f f e c t,

c ommerce and
int e rs t a t e
the
movement
of
artic l e s
and
commodit ie s
in commerce by extort ion, as tho s e terms are def ined in T i t l e 18,

Uni ted S ta t e s C9de, J.95l ;
CONAHAN and MARK A.
that i s, the de f endants MICHAEL T .
CIAVARELLA, JR .
obtained property f rom
anothe r, namely, a wire t rans f er o f $100,000, whi ch was

trans f erred f rom a bank ac count o f V i s ion Hol dings, Inc .
contro l l e d by PARTICIPANT #1, not due the de f endant s or the i r
o f f i c e , w i t h that other ' s consent, under c o l o r of o f f i c ia l right,
in vio l a t i on o f T i t l e 18, Uni ted States Code, 1951 .
ii .
RACKETEERING ACT 8 . 2 ( Br ibery Chargeab l e Under State

Law - Wire Trans f e r o f $ 100 , 000 )
51 .
On or about S ep temb e r 23 ,
2004 , in the M i dd l e D i s trict
of Pennsylvania, and e l s ewhere, the de fendant s MI CHAEL T .

and MARK A .
CIAVARELLA, JR.
CONAHAN
d i d knowingly commit bribery, that
i s, the def endants s o l i c i t ed,
accepted and agreed to ac c ept from

20
another, namely PARTICIPANT # 1 , monetary bene f i t s , to wit, a wire

trans f er of $ 10 0 , 0 0 0 , whi ch was t rans f e rred f rom a bank account
of Vis i on Holdings ,
Inc .
cont ro l l e d by PARTICIPANT #1, as
cons ideration f or v i o l a t ions of known legal dut i e s of the

de f endants as pub l i c s e rvants, in vio l a t i on of T i t l e 18, Pa . C. S .
470 1 ( a ) ( 3 ) .
T.
i.
Ac t Nine
C i avare l l a on
52 .
In furtheranc e of the o f f ense, the de fendant s MI CHAEL
CONAHAN and MARK A. CIAVARELLA,
Paid t o Conahan and
JR . , commi tted the fol lowing
ac t s , any one o f whi ch alone cons t i tutes Racketeering Ac t Nine .

i.
RACKETEERING ACT 9 . 1 ( Extortion Under Color of Of f i c i a l

Right - C a s h Payment of $ 4 2, 0 0 0 )
53 .
On or about Augu s t 1 6 ,
20 0 6, in the M i ddle D i s t r i c t
of Pennsylvania, and e l sewhere, t he de fendant s MICHAEL T .

and MARK A.
CONAHAN
CIAVARELLA, JR. d i d knowingly, intent iona l ly and
wi l ful ly a f f e c t, and a t t empt t o a f fect, interstate commerce and

the movement o f art i c l e s and c ommodi t i e s in commerce by
extortion, as tho s e t e rms are de f ined in T i t l e 1 8 , Uni t e d States
Code, 1 951 ;
that i s, the de f endant s MICHAEL T .
A. CIAVARELLA, JR .
CONAHAN and MARK
obtained p rope rty f rom another, name ly, c ash
in the amount of $ 42,0 0 0, whi ch was trans f erred f rom PART I C I PANT
#1,
not due the de f endants or the i r o f f i c e, with t hat other ' s
consent, under c o l o r of o f f ic ia l right, in violat ion o f T i t le 18,

Uni ted S ta t e s Code, 1 951 .
21
ii .
RACKETEERING ACT 9 . 2 ( Bribery Chargeab l e Under S tate

Law - Cas h Payment of $42,000)
54.
On or about Augus t 1 6 , 2006, in t he Middle D i s tr i c t o f
Pennsylvania ,
and'MARK A .
and e l s ewhere, the def endant s MICHAEL T . CONAHAN
CIAVARE LLA, JR.
did knowingly commit bribery, that
i s , the de f endant s so l i c ited, accepted and agreed to accept f rom

anothe r ,
name ly PARTICI PANT #1, monetary bene f i t s , to wi t, cash
in the amount of $42,000, whi c h was trans f erred by PARTICIPANT

#1, as cons iderat i o n for violat ions of known l ega l dut i e s o f the
de f endant s as pub l i c s e rvant s, in violat ion o f Ti t l e 1 8 , Pa. C. S .
47 01 ( a ) ( 3 ) .
j.
Ac t Ten Ciavare l l a on November
55 .
I:n f urtheranc:e o f the o f f ense
T . CONAHAN and MARK A.
Pai d To Conahan And
the de f endants MICHAEL
C IAVARELLA, JR . , comm it ted the f o l lowing
acts, any one o f which alone c ons t i tute s Rack e t e e ring Ac t Ten .
i.
RACKETEERING ACT 10 . 1 ( Extort i on Under Co lor of

O f f i c ial Right - Cash Payment of $20,000 )
56.
On or about November 1, 2006, in the Middle D i s t r i c t
of Pennsylvan i a, and e l s ewhere, the de fendant s MI CHAEL T .

and MARK A.
CIAVARELLA, JR.
did knowingly ,
CONAHAN
i nt ent i onal ly and
wil fully af f e c t, and a t t empt to a f f e c t, int e r s tat e c ommerce and

the movement o f art i c l e s and c ommodi t i e s in c ommerce by
extortion, a s tho s e terms are de f ined in T i t l e 1 8 , Uni ted States
Code, 1 951 ;
A.
that i s , the de f endant s MICHAEL T.
CIAVARELLA, JR .
CONAHAN and MARK
obtained property from ano the r, name ly, cash

22
in the amount o f $20, 000 ,

#1,
not due the de f endants or the i r o f f i c e,
consent,
unde r c o l o r o f o f f i c i a l right,
United S t at e s Code,
in violat ion of T i t l e 18,
1951 .
RACKETEERING ACT 1 0 . 2 ( B ribery Chargeabl e Under S t a t e

Law - C a s h Payment o f $20 , 00 0 )
57 .
On or about November 1,
and MARK A .
and e l s ewhere,
CIAVARELLA,
JR .
did knowingly comm i t bribery,
that
ac cepted and agreed to accept f rom
nam e l y PARTI C I PANT #1,
in the amount o f $20, 000 ,
2006 ,
the de f endant s MICHAEL T. CONAHAN
the def e ndant s s o l i c i ted,
another,
#1,
w i th that other ' s
ii .
Pennsylvania,
is,
whic h was t rans f e rred f rom PARTICI PANT
monetary bene f i t s ,
to wit,
cash
whi c h was t rans f erred by PARTICIPANT
as cons i derat i on f o r v i o l a t ions o f known legal dut i e s of the
de fendant s as publ i c serVants,
in violat i on of T i t l e 18,
Pa . C . S .
4 701 ( a} ( 3 ) .
T.
Ac t El even C i avare l l a on Novembe r
58.
In furtherance o f the o f f ense,
ac t s ,
Paid to Conahan and
k.
CIAVARELLA,
JR . ,
the de f e ndant s MICHAEL

comm i t t e d the fol lowing
any one of whi ch alone c ons t i tutes Racke t e e r ing Ac t E l even .

i.
RACKETEERING ACT 11 . 1 ( Extort ion Unde r Color o f

O f f i c ial Right - Cas h P ayment o f $50 , 000 )
59 .
On or about Novembe r 2 0 ,
of Pennsylvania,
and MARK A .
and e l s ewhere,
CIAVARELLA,
wi l ful ly a f f e c t,
JR .
2006,
in the Middle D i s tr i c t
the de fendant s MI CHAEL T . CONAHAN
did knowingly,
and a t tempt t o a f f e c t,
23
intent ional ly and
int e r s t a t e c ommerce and
the movement of art i c l e s and c ommodi t i e s in comme rce by

extort i on, a s tho s e terms are de f ined in T i t l e 1 8 ,
Code, 1 951 ;
A.
that is, the def endants MICHAEL T .
C IAVARELLA, JR .
CONAHAN and MARK
obt ained property f rom another, name ly, cash
in t he amount of $50, 0 0 0,
#1,
Uni t e d S tates
whi c h was trans ferred f rom PART ICIPANT
not due the de f endants or t he i r o f f i ce, wi th t hat other ' s
consent, under color o f offi c i a l r i ght, in violat i on o f T i t l e 1 8,

Uni ted S t a t e s Code, 1 951 .
ii .
RACKETEERING ACT 1 1 . 2 ( Bribe ry Chargeabl e Under S tate

Law - Cash Payment of $50, 0 0 0 )
6 0.
On or about November 20 ,
200 6 ,
in
the Middle D i s t rict
of P ennsylvania, and e l sewhere, the de f endants MICHAEL T .

and MARK A .
CIAVARELLA, JR .
did knowingly commi t b ribery, that
is, the de fendant s sol i c i ted ,
a c c epted and agreed to acc ept f rom
another, namely PARTICI PANT #1,

in t he amount of $ 50 , 0 0 0 0,
#1,
CONAHAN
monetary bene f i t s , to wi t, c ash
whi ch was t rans ferred by PART ICI PANT
as cons iderat ion for violat ions o f known l egal dut i e s of the
de fendant s as pub l i c s e rvant s, in violat ion o f T i t l e 1 8 ,
Pa . C . S .
4701 (a) (3) .

1.
Act Twe lve

Ciavare l la on Dec embe r
6 1.
In furtherance o f the o ff ense, the de fendants MICHAEL
T . CONAHAN and MARK A .
Paid to Conahan and
CIAVARELLA, JR . , commi t t e d the f o l lowing
ac t s , any one o f which a lone c ons t i tutes Racket e e r ing Ac t Twelve .

i.
RACKETEERING ACT 12 . 1 ( Extort ion Under Co lor o f

Off i c i al Right - Cas h Payment o f $ 3 1 , 50 0 )
24
62 .
On or about Decembe r 1 8, 20 0 6 , in the Middle D i s t r i c t
of Pennsylvania, and e l s ewhere, the de fendants MI CHAEL T .

and MARK A .
CIAVARELLA, JR .
did knowingly ,
CONAHAN
intent iona l ly and
wi l fu l ly a f f e c t, and attempt to a f f ect, interstate c ommer c e and

the movement o f art i c l e s and c ommod i t i e s in c omme rce by
extort i on, as tho s e terms are de f ined in T i t l e 1 8, Uni ted States
Code, 1 951 ;
A.
that i s , the de f endant s MICHAEL T .
C IAVARELLA, JR .
CONAHAN and MARK
obtained prope rty f rom another, name ly, c ash
in the amount of $3 1,50 0 , whi c h was trans f erred f rom PARTICIPANT

#1, not due the de f endant s or the i r o f f ic e, with that other ' s
cons ent, under color o f of f i c i al right, in v i o lat ion o f T i t l e 18,
United S t a t e s Code ,
1 951 .
ii .
RACKETEERING ACT 12 . 2 ( Bribery Chargeab l e Under State

Law - Cash Payment o f $3 1,500 )
63 .
on or about December
1 8, 2006, in the M iddl e D i s t r i c t
of Pennsylvania, and e l s ewhere, the de f endant s MICHAEL T .

and MARK A .
CIAVARELLA, JR .
CONAHAN
did knowingly c omm i t bribery, that
i s, the de f endants s o l i c i ted, acc epted and agreed to a c c ept f rom

anothe r, name ly PARTICI PANT #1, mone tary bene f it s , to wit, c ash
in the amount of $3 1,500 , whi c h was t rans f e rred by PARTICI PANT
#1, as cons idera t i on for violat ions of known legal dut ie s of the
de fendants as pub l i c s e rvants, in violat i on o f T i t l e 1 8, Pa . C . S .
4701 (a) ( 3 ) .
64 .
From in or about Dec ember, 200 1 to on o r about the date

25
o f this Indic tment,

e l s ewhere,
in the Middle Dis t ric t of P ennsylvania ,
t he de f endant s MICHAEL T.
C IAVARELLA ,
JR .
did knowingly,
and
CONAHAN and MARK A.
intent ional ly and wil fully
combine ,
conspire,
another ,
and toget her with other persons both known and unknown
to the grand j ury ,

United S tate s ,
conf ederate and agree together with one
to commit the f o l lowing of f ense agains t the
name ly,
to knowingly c onduc t and attempt to
conduc t a f inanc ial t ransac t ion af fec t ing int e r s t ate commerce
which involved the proc eeds of a spe c i f ie d unlawful act ivity ,
knowing that the t ransac t ion was de s igned in whol e and in part to
conceal and disgu i s e the nature,
locat ion ,
source,
ownership and
control of t he proceeds of said spec i f ied unl awful act ivity and
that whi l e c onduc t ing and a t t empt ing t o conduc t s uch f inanc ial
t ransact ion knew that the property involved in the f inanc ial
t ransact ion repre s ented the proceeds o f some f orm of unlawful
ac t ivity,
in vio l a t ion of T it l e 18, United S ta t e s Code ,
1956 ( h ) .
Al l in violat ion o f T it l e 18, United S t a t e s Code ,
1962 ( c ) .
26
2 and
Count 2
1 8 u.s.c. 1 9 6 2 ( d)
( Racketeering Conspiracy)
THE GRAND
JURY
FURTHER CHARGES :
The al l egations contained i n Count 1 o f this
65.
Indi ctment are hereby re-al leged and incorporated by re ference as

i f ful ly s e t forth herein .
66 .
From on or about December , 2 0 0 1 ,
the exact dat e be ing
unknown , to on or about the dat e of thi s I ndi c t ment ,

Middle D i s t r i c t of Pennsylvania , and e l s ewhere ,
in the
the de fendant s ,
MICHAEL T . CONAHAN and

A . CIAVARELLA , JR . ,
MARK
t ogether wi th o ther persons known and unknown t o the grand j ury ,

be ing persons employed by and as soc iated w i th an Enterpr i s e ,
which Ent erpri se engaged in , and the ac t iv i t i e s o f whi ch
a f fected,
inters tate and fore ign c ommerc e ,
did knowingly and
intent iona l ly comb i ne , conspire , confederate and agree to viol ate

18 U . S. C .
1 9 6 2 ( c) , that i s , to c onduc t and part i c ipate ,
directly and indi re c t l y , in the conduc t of the a f fairs o f the

Enterpr ise through a pattern o f rac keteering ac t ivity , that i s ,
through the commi s s i on o f the racketeering ac t s spe c i f ied in
Count 1 of thi s Indic tment , among others .
67 .
As part o f the conspi racy ,
CONAHAN and
MARK
the de fendant s MICHAEL T .
A. C IAVARELLA , JR . did agree that they and the ir
coconspirators would c ommi t at least two a c t s of racketeering
27
act ivi ty whi ch amounted to a pattern o f racketeeri ng act ivity in

the conduct of t he a f fair s of the Enterpri s e .
All i n violation of T i t le 18,
28
Uni ted S t a tes Code ,
1962 ( d) .
Count s 3 - 6
1 8 U . S. C . 134 3, 134 6 and 2 )
( Hone st S e rvic e s Wire Fraud )
THE GRAND JURY FURTHER CHARGES :
6 8.
The a l legat ions c ontained in Counts 1 and 2 o f this
Indic tment are hereby re - al leged and incorporat e d by re ference as

if ful ly s e t forth her e in .
6 9.
From in or about June ,
unknown to the grand j ury,

of this Indictment ,
e l s ewhere,
20 0 0 , the exa c t date being
to on or about the date o f the f iling
in the Middle D i s trict of Pennsylvania,
and
the de f endant s,
MARK A. CIAVARELLA, JR. ,
each aiding and abe_t t ing t he o ther and each aided and abe tted by
the other and by other persons known and unknown,
devis ed and
intended to devise a material s cheme and art if ice to de fraud the

c itiz ens of Luz erne County,
the c i t i z ens o f the Commonwealth of
Pennsylvania and the Judic iary of the Commonwea l t h o f

Pennsylvania and t o deprive those citiz ens and the j udiciary of
their right to the hone st s e rvic e s o f MICHAEL T .
A.
CIAVARELLA,
JR .
Luz e rne County,

CONAHAN and MARK
as j udge s o f the Court of Common P l eas for
perf ormed f ree f rom dec e it,

s e l f - dealing,
concealment,
int e re s t .
29
f avorit ism,
b ia s ,
and conf l ic t o f
THE RIGHT TO HONEST SERVI CES

70 .
At a l l times material to thi s Indictment ,
defendants MI CHAEL T .
the
CIAVARELLA ,
JR .
were
elected judges of the Court of Common Pleas for Luzerne County ,

Pennsylvania and as such were pub l i c of f i c i a l s .
MI CHAEL T .
CIAVARELLA ,
JR .
The defendants
owed a f i duc iary
duty to the pub l i c and to the Judi c i ary of the Commonwealth of

Penns ylvania not to rea l i ze personal f inanc i a l gain through their
of f i ce other than c ompens ation provided by l aw,
to refrain f rom
conduct that constitutes a conflict of i nteres t or that

consti tutes s eeking or accepting improper i n f l uenc e ,
to recuse
themselves from matters in whi c h they have a c onf l i ct of

interes t , and to fil e a truthful and comp l ete annual statement of
financ ial interes ts ,
reporting the sourc es of a l l income ,
di rect
or indirec t .
71.
Part o f the f i duc iary duty owed by the def endants aros e
from constitutional
law ,
inc luding ,
Arti c l e 5 ,
17 (b)
and 17 ( c )
of the Pennsylvania Constitution.

7 2.
Part of the f i duciary duty owed by the def endants ,
independent of c ons titutional or statutory l aw,

def endants '
arose from the
pos itions as judges of the Court o f Common P leas ,
inc luding requirements of the Pennsylvan i a Code of Judi c i al

Conduc t and Admini s trative Orders of the Penns ylvani a Supreme
Court regarding matters related to Judges of the Court of Common
30
Ple as .
Among other t hings ,
the fiduciary duty owed by the
de fendants inc l uded t he duty aris ing from their positions as

judges to dis c l ose ma t e rial in formation a f f e c ting their ability
to engage in impartial decis ion-making.
MEANS AND METHODS OF THE DEFENDANTS
I t was a part of the s c heme and artific e to de fraud
73.
that the de f endants agreed together,

unknown to the Grand Jury ,
alleged in the "MANER ,
and with othe r s known and
to engage in t he c ourse of conduct
MEANS AND METHODS OF THE DE FENDANTS1'
sec tion of Count 1 of this Indic tment.
Thos e alle gations are
hereby re-a11eged and incorporated by re f e rence as if ful ly s e t

forth herein .
_
As furthe r de s c ribed herein ,
gfrauded the citizens o f :f.t1zerne Count y ,
t he de f endant s
the c :i.tizens of the
Commonwe a l th of Pennsy lvania and the Judiciary of the

Commonwea l th of Pennsylvania and deprived tho s e citizens and the
Judiciary of their right to the hone s t s e rvic e s of the de fendan t s
by:
(1)
engaging in undisc losed biased de cis ion-making for
pers onal gain;
and ,
(2)
knowing l y so liciting ,
extorting and
bribes as part of a gene ra lized agreement
accepting
to improp e rl y exert in f luence on beha l f of the bribe payer as

specific oppor t unitie s aros e to do s o.
74.
I t was furthe r a part of the s c heme and artifice to
de fraud that the de f endants MI CHAEL T. CONAHAN and MARK A .

CIAVARELLA ,
JR .
knowing ly and intentiona l l y filed ma terially
31
f a l s e annua l s t atement s of f inanc i a l interes t s wi th the

Admini s t rat ive O f f i c e of the P ennsylvania Courts in whi c h they
f a i led to d i s c lose the sourc e of i ncome they rece ived and in
which they fai led t o disc l o s e the i r f inanc ial re l at ionship with
PARTI C IPANT #1, PARTICI PANT #2,
Chi ld Care,
75 .
PA Chi ld Care and We s te rn PA
whi c h were material matters .
I t was further a part o f the s c heme and art i f ice to
de f raud that the de f endant s M I CHAEL T .

CIAVARELLA,
JR . ,
a c t ing on beha l f o f the Cour t of Common Pleas
for Luz e rne County in mat ters in which they had d i s c re t ionary
dec i s ion - making authori ty,
wri t ten,
knowingly and int ent iona l ly i s sued
oral and w i re communi cat i ons whi ch were mate r i a l ly false
to the extent that the de f endant s did not di s c lose the i r conf l i c t
-
..
of interest and the i r f inancial relationship with PART I C I PANT #1,

PART I C I PANT #2,
PA Chi l d Care and We s t e rn PA Chi ld Care ,
which
were material mat t ers.

76 .
I t was further a part o f the scheme and art i f i ce to
de f raud that the d e f endant s M ICHAEL T .

CIAVARELLA,
JR . ,
CONAHAN and MARK A.
ac t ing on behalf o f the Court o f Common Pleas
for Luz e rne County in matt e r s in whi ch they had d i s c r e t i onary

dec i s ion - making aut hority ,
knowingly and intent i onal ly i s sued
reports and s t atements to the Admini s t rat ive O f f i c e of the

Pennsylvania Court s which wer e mat erial ly fal s e to the extent
that the de f endant s did not d i s c lo s e the i r c onf l i c t of intere s t
32
and their f inanc ial re l ationship with PARTI C I PANT #1 PARTICIPANT

#2, PA Child Care and We s te rn PA Child Care, which were material
mat t ers.
77 .
I t was further a part of the s c heme and art i f i c e to
de f raud that t he de f endant MICHAEL T.
CONAHAN ente red into
agreements guaranteeing p lacement of j uvenile o f fenders with PA

Child Care and Wes te rn PA Child Care and took o f f icial action to
remove funding f rom the Luz e rne County Court budge t for the
Luz e rne County j uveni l e det ention f a c i l ity .
The prac tic a l e f fect
of thi s action was to c lose the Luzerne County youth det ention
center .
The de f endant s MI CHAEL T .
CIAVARELLA, JR . , through their actions , facilitat ed the

cons t ruct i on of j uveni l e qet ent ion f ac i l i t i e s and an expan._s ion to
one of t hose faci l i t i e s by PA Chi l d Care and We s te rn PA Chi l d
Car e and di rec t ed t hat j uvenile o f fenders be l odged a t j uvenile
det ent ion f ac i l i t i e s ope rated by PA Child Care and We s t e rn PA
Chil d Care .
Through their ac tions ,
the de f endant s as sis ted Pa
Chil d Care and We s tern PA Chi l d Care to s e cure agreement s with

Luz e rne County worth tens o f mil l ions of do l lars for the
plac ement of j uvenile o f fenders, inc luding an agre ement in l ate
2004 worth approximat e l y $58,000,000.
I t was further a part of
the scheme and artifice to de f raud that, on a numbe r of

occas ions, accused j uveni l e o f f enders were order e d detained by
the de fendant MARK A .
CIAVARELLA, JR .
33
even when Juveni l e
Probation Officers did no t rec ommend det e ntion and even when
de tention wa s unreas onabl e and unwarrant ed under the
circumstanc e s .
The defendant MARK A. CIAVARELLA,
ope rating a t his behe s t,
JR.,
and othe r s
also exerted pre s sure o n s t aff of the
Court of Common P l eas to recommend de tention of juvenile

On s ome occasions ,
offende rs.
probation o f f ic e r s we re pre s sured
to change re comme ndat ions o f release to rec ommendations of

In his c apac ity as Pre s ident Judge ,
de tention.
the defendant
MI CHAEL T. CONAHAN took actions rel ating to proceedings invo lving

juveni le o f f e nde r s who were s e nt to PA Chi l d Care and We s t ern PA
Child Care facili tie s .
ac tions ,
The f oregoing actions ,
of t he de f endants MI CHAEL T.
CJAVARELI.
CONAHAN and MARK A.
JR. re lated to matters in which they had
dis c re tionary de c is ion-making authority .

T.
as we l l as othe r
CONAHAN and MARK A.
other ac tions ,
CIAVARELLA ,
JR .
The defendant s MI CHAEL
took the se actions ,
and
wi thout recus ing them s e lves f rom mat ters in whi ch
they had a conflict o f intere s t and without di s c l o sing t o partie s

invo lved i n c ourt proceeding s ,
o f the Pennsylvania Court s ,
and t o the Adminis trat ive Of fic e
t heir conflic t o f intere s t and the
financ ial relations hip that exis t e d between the defendant s and
PARTICI PANT # 1 , PART ICI PANT # 2 ,
Child Care ,
78 .
PA Child Care and We s t e rn PA
whi c h were mate rial ma t t ers .
I t was
further a part of the s cheme and art ific e to
de f raud that the de f e ndants MI CHAEL T. CONAHAN and MARK A.
34
CIAVARELLA ,
JR .
violated the ir dut i e s o f independence,
impart ial ity and integrity in the exe r c i s e o f the ir dis c ret ionary
actions on behal f of the Court of Common P l e a s for Luz erne County
by f a i l ing to recuse t hems e lve s f rom a c t ing in matters in which
they had a mate r i a l conf l i c t of int e re s t and in f a i l ing to
di s c lo s e to part i e s appearing before the court and to the
Admini s t rat ive O f f i c e of the Pennsylvania Cour t s the i r conf l i c t
of interest and the i r f inanc ial re lat i onship w i t h PARTI C I PANT #1,
PARTICIPANT #2, PA Chi l d Care and We s te rn PA Child Care,
whi ch
we re material mat t e r s .
79 .
I t was f urther a part of the s cheme and art i f ice to
de f raud that the de f endant MARK A .
CIAVARELLA,
JR .
adop ted
procedure s in_ j uven i l e court w:g._ich resulted in j uvenil e s

appearing w ithout counsel and wi thout c reat i on o f a normal court
record .
The adopt ion of the se proce dures was accomp l i shed
through the di s cr e t ionary dec i s ion -making autho r i ty of the

de fendant MARK A .
CIAVARELLA,
JR .
The adopt i on of the s e
procedures resulted in vio l ation o f the cons t i tut ional right to

counse l a f f orded j uveni le o f fenders and created the potential for
an increased number of j uveni le of f ende rs t o b e s ent to the
j uveni le de tention facil i t i e s of PA Chi ld Care and We s t e rn PA
Chi ld Care .
The de f endant MARK A .
CIAVARELLA,
JR .
took the s e
act ions without di s c lo s ing to the part i e s b e f ore the court and t o
the Admini s trat ive O f f i c e o f the Cour t s his conf l i c t o f intere s t
35
and the f inanc i a l relat ionship that exi s te d between the de fendant
MARK A .
CIAVARELLA,
JR.
and PARTI C I PANT # 1 ,
Chi ld Care and We s te rn PA Chi l d Care ,
PARTI C I PANT #2 ,
PA
whi ch were mate rial
mat ters.
80.
I t was further a part o f the s c heme and art i f i c e to
de f raud that the de f endants MI CHAEL T .

CIAVARELLA ,
JR .
Common Pleas ,
otherw i s e conducted the a f f a i rs o f the Court of
in mat t e r s in whi ch they had d i s c r e t ionary
dec i s ion-making authori ty,
without d i s c l o s ing the ir conf l ict of
int ere st and f i nanc ial relat i onship with PARTI C I PANT #1 ,
PARTI C I PANT #2 ,
PA Chi ld Care and We s te rn PA Chi l d Care,
knowing
tha t these were mat erial matt e r s that should have been d i s c losed
to part ies appearing be fore the court,
to _ the Admini s trat ive__
O f f i c e of Courts and to other persons and ent i t i e s .

81.
I t was further a part o f the s c heme and art i f i c e to
de f raud that the de f e ndant s knowingly sol i c i ted,

ac cepted gyig
extorted and
QYQ bribes as part o f a genera l i z e d agreement
to imprope rly exert inf luence on beha l f of PART I C I PANT #1, PA

Chi ld Care and We s te rn PA Chi l d Care a s spec i f i c opportun i t ies
aro s e to do so .
t o de f raud,
For instance,
a s part of the s cheme and art i f i c e
the de f endant M ICHAEL T.
CONAHAN summari ly granted a
mot ion to s eal the record and for inj unc t ive re l i e f in a c iv i l
cas e re lated to PA Chi ld Care .
36
EXECUTION OF THE SCHEME

82 .
On or about the date of each count l i s t e d below,
Middle D i s t r i c t of Pennsylvania and e l s ewhere,

MICHAEL T .
CIAVARELLA ,
in the
the de f endant s
JR . ,
each aiding and
abet t ing the other and each aided and abe t t ed by the othe r and by
other persons known and unknown,
f o r the purpos e of execut ing the
above - de s c r ibed material s cheme and art i f i c e to de f raud and

deprive the c i t i z ens o f Luz erne County,
the c i t i z ens o f the
Commonwealth o f Pennsylvania and t he Judic iary of the

Commonwealth of Pennsylvania of the ir right to the hone s t
s e rv i c e s o f the de f endant s
C IAVARELLA,
JR . ,
MI CHAEL
T.
CONAHAN
and MARK A .
t rans m i t t ed and c aused to be t ransm i t te d by
means o f wi re commun i c at ion _ in JntE::r:-s tate commerce,

writ ings ,
the f o l J_ qwing
s igna l s and sounds :

Wire Transm i s s ion
Count
3
July 12,
S eptembe r 23,
July 1 5 ,
E l ectronic f unds trans fer of

$ 120, 0 0 0 trans f erred f rom an
account of Vis ion Holdings,
Inc . to an acc ount of the
Pinnac l e Group o f Jup i ter,
LLC .
20 0 4
Electroni c f unds t ran s f e r of

$ 1 0 0, 0 0 0 t rans ferred from an
account of V i s ion Holdings,
Inc .
20 04
E l e c t ronic funds t rans fer of

$ 1, 0 0 0, 0 00 t rans f e rred from
an ac count o f Mer i c le
Cons tru c t ion, Inc . to an
account of P i nnac l e Group of
Jupiter, LLC .
20 0 5
37
Wire Transmi s s ion
Count
February 3,
E l e c t ronic funds t rans fer of

$ 1 5 0, 000 t rans f e r red f rom an
account o f Meric le
Constru c t ion , Inc. to an
account o f Pinnac l e Group of
Jupit e r , LLC.
2006
In vio lation o f Tit le 1 8 ,
Uni ted S t a t e s Code ,
1 34 6 .
38
2,
1 34 3 and
Counts 7 - 10
1 8 U . S . C. 134 1 , 134 6 and 2 )
( Hone s t Serv i c e s Mai l F raud )

83.
The al legat ions conta ined in Count s 1 through 6 of thi s
Ind i c tment are hereby re - al leged and incorporated by re ference as

i f f ul ly set f orth here in .
84 .
From in or about January,
unknown to the grand j ury,

of t h i s Ind i c tment,
els ewhere,
2001,
the exa c t date be ing
to on or about the date of the f i l ing
in the Middl e D i s tri c t of Pennsylvania,
and
the de f endant ,
MI CHAEL T .
CONAHAN,
_devi s e d and intended to devise a material scheme and arti f ie to

de f raud the c i t i z ens of Luz erne County,
t he c i t i z ens of the
Commonwea l t h o f Pennsylvania and the Judi c iary of the

Commonwea l t h o f Pennsylvania and to deprive t hose c i t i zens and
the Judic i ary o f the i r r ight to the hone s t s e rv i c e s of MI CHAEL T .
CONAHAN as a j udge o f the Court of Common Pleas for Luzerne
County, per f ormed f r e e f rom dec e i t,
enr i chment,
se l f - de a l ing,
f avor i t i sm,
bias,
se l f -
conc ealment and con f l i c t s o f intere s t.
EXECUTION OF THE SCHEME

85 .
On or about the date of each count l i s ted be low,
Midd l e D i s t r i c t of Pennsylvania and e l s ewhere,

MICHAEL T .
CONAHAN,
the def endant
for the purpose o f execut ing the above -
39
in the
de scribed material scheme and art i f i ce to de f raud and deprive the

c i t i zens of Luzerne County , the c i t i z ens of the Commonwealth of
Pennsylvania and the Judi c iary of the Commonwealth of
Pennsylvania o f the i r right to the hone s t s e rv i c e s of the
de fendant MI CHAEL T . CONAHAN , c aused to be de l ivered by the
United State s Postal Service and by any privat e and commercial
inters tate carrier to the Administrat ive O f f i c e o f the
Pennsylvania Court s in Phi lade lphia , Pennsylvania , and thereafter
caus ed to be de l ivered by the Uni ted S tate s Postal Service and by
any private and comme rc ial int e rs tate carr i e r to the Judicial
Conduc t
B oard
of
Penn s y lvani a
i n Harri sburg ,
M i dd l e
D i s tr i c t
of
of
Pennsylvania , the , f o l lowing things :

Count
Date
Apri l ,
2 0 04
Material ly f al s e annual
statement o f f inanc ial
interes t s s ubm i tted t o the
Admini s t rative O f f ice of the
Pennsylvani a Courts
March ,
2005
Materia l ly f al s e annual
s tatement of f i nanc ial
intere s t s submit ted t o the
Admini s t rat ive O f f i c e of the
March ,
2006
Materi a l ly f al s e annual
s tatement of f i nanc ial
intere s t s s ubmi t ted t o the
Admini s trat ive O f f ice of the
Pennsylvani a Court s
40
Count
10
Apr i l ,
Mat e r i a l ly f a l s e annual
intere s t s subm i t t e d to the
Admin i s trat ive Of f ice of the
20 0 7
In vio lat i on o f T i t l e 1 8 ,
United S t a t e s Code,
1 34 6 .
41
2,
1 34 1 and
Counts 11-14
1 8 U . S . C . 134 1 , 134 6 and 2)
( Hone s t Servic e s Mail Fraud )
THE GRAND JURY FURTHER CHARGE S :
86 .
The a l l e gations cont aine d in Counts 1 through 10 o f
this Indic tment are hereby re - a l l eged and inc orporat e d by

ref erence as
87 .
i f f u l l y s et forth herei n .
From in or about January ,
unknown t o the grand j ury ,

o f this Indic tment ,
e l s e where ,
2001,
the exa c t date being
to on or about the da t e of the f i l ing
in the Middle Dis tric t of Pennsyl vania ,
and
the de f endant ,
MARK A .
C IAVARELLA ,
JR. ,
devised and intended to devise a material s c heme and artifice to

de fraud the c itizens of Luzerne County ,
the citizens of the
Commonwealth of Pennsylvania and the Judic iary of t he

Commonwea l th o f Pennsylvania and to deprive those citizens and
the Judiciary of their right t o the hone st servic e s o f MARK A .
C IAVARELLA ,
JR. ,
Luzerne Count y ,
a s a judge o f the Court o f Common P l e a s for

performed fre e from de c eit ,
s e l f -enrichment ,
s e l f -dealing ,
favoritism ,
bias ,
concealment and conf lic t s o f
intere s t .
EXECUTION OF THE S CHEME
88 .
On or about the da t e of each count lis t e d be l o w ,
Middle Dis tric t of Penns ylvani a and el sewhere ,

A.
C IAVARELLA ,
JR . ,
the de f e ndant MARK
f or the purpose of exe cuting t he above 42
in the
de s c r ibed mat e rial scheme and art i f i ce to de f raud and deprive the
c i t i z ens of Luz e rne County,
the c i t i z ens o f the Commonwealth of
Pennsylvania and the Jud i c i ary of the Commonwealth of

Pennsylvania o f the i r r i ght to the hone s t s e rv i c e s of the
de f endant MARK A .
C IAVARELLA, JR . ,
caused to be del ivered by the
Uni ted S t a t e s Pos t a l S e rv i c e and by any private and commerc ial

inters tate carrier to the Adminis t rat ive O f f i c e of the
Pennsylvania Court s in Phi lade lphia County,
Pennsylvania,
Eastern D i s t r i c t of
and therea f t e r c ause d to be de l ivered by the Uni t e d
States Pos t a l S erv i c e and by any private and comme r c i a l

interstate
carri e r
in Harri sburg,
to
the
Judi c i al
Conduc t
Board o f
Middle D i s t rict of Pennsylvania,
P e nnsylvan i a
the f o l lowing
t J:l,ings :
Count
11
Apr i l ,
2 004
Mat e r ia l ly fal s e annual

sta t ement o f f inanc ial
int e re s t s submit ted to the
Admini s t rat ive O f f i c e of the
12
March,
2005
Mat e r i a l l y fal s e annual

int e re s t s subm i t ted to the
Admini s trat ive O f f i c e of the
Pennsylvania Courts
13
Apr i l , 2 0 0 6
Mat e ri a l ly fal s e annual

intere s t s subm i t t e d to the
Admini s t rat ive O f f i ce of the
43
Count
14
March,
200 7
I n violat ion o f T i t le 1 8 ,
Mate r i a l l y f a l s e annual
s t atement o f f inanc ial
intere s t s subm i t ted to the
Admini s trat ive O f f ice of the
Pennsylvani a Cour t s
1 34 6 .
44
2,
1 34 1 and
Counts 1 5 - 24
1 8 u . s . c . 666 (a) ( 1 ) (B)
( Corrupt Rec e ip t of Bribe /Reward for O f f i c i a l Ac tion
Conce rning P rograms Rece iving Federal Funds )
89 .
The a l l e gat i ons cont ained in Count s 1 through 1 4 o f
thi s Indic tment are hereby re - al leged and incorporated by

re f e renc e as i f ful ly s e t f orth here in.
9 0.
As e le c t ed j udge s o f the Court o f Common Pleas for
Luz e rne County the de f endant s were agent s o f a number of

government ent i t i e s ,
Adm i n i s t rat ive
i nc luding ,
Off ice
of
the
but not l imi ted t o,
Pennsylvani a
Court s ,
the
government
agency of the Commonwealth of P ennsylvania that employed the

de f
_a_s j udg e f:) .

_
The Commonwealth of Pennsylvania ,
91 .
Luz e rne County and
the Court o f Common P l eas for Luz erne County each received
f ederal as s i s tance in exc e s s of $ 1 0 , 0 0 0 dur ing each one - year
period beginning on January 1,
December 31,
20 0 2 and extending through
20 0 7 .
Be tween on o r about January 1,
92.
January 1,
2 0 0 7,
e l sewhere,
the de f endants,
2 0 0 2 and on or about
in the Middl e D i s tr i c t of Pennsylvania ,
MI CHAEL T.
CIAVARELLA ,
and
JR . ,
each aiding and abe t t ing the other and each aided and abet ted by
the other and by othe r persons known and unknown ,
45
did knowing ly,
intent i onal ly and corrup t ly sol i c i t and demand for the i r own
bene f i t ,
and did a c c ept ,
and agree t o accept ,
f rom another
person ,
mul t ip l e monetary payment s in amounts of more than
$5 , 000 ,
intending to be inf luenced and rewarded in c onnec t ion
with the bus ine s s o f the government ent i t i e s they repre s ented as
j udges of the Court of Common P l eas for Luz erne County .
part icular ,
In
payment s were made to and accepted by the defendants
in connec t ion w i th o f f i c i a l a c t i ons taken and intended t o taken

by the de f endants to fac i l i tate the p l anning ,
c onstruction and
operat ion o f j uven i l e det ent ion fac i l i t i e s owned ,

opera t e d by
PA
Chi l d
Care
and We s t ern
PA Chi l d
E ach of the f o l l owing mone tary payment s ,

or a t t:_e_ dates indicated ,
c ons tructed and
Care.
which occurred on
a sprt_e _<:;:aunt of
this I ndictment :
Amount and Type o f
Count
Date
15
2 - 15 - 2 0 0 4 2 - 24 - 2 0 04
Vi s ion
Holdings ,
Inc .
che cks )
16
4 -3 0 - 2004
Vi s ion
Holding s ,
Inc .
checks )
17
7 - 12 - 2 0 0 4
Vis ion
Holdings ,
Inc .
$ 1 2 0 , 0 0 0 W i re Trans fer
9 - 23 - 2 0 04
Vis ion
Ho ldings ,
Inc .
$ 1 0 0 , 0 0 0 W i r e Trans fer
18
From
$200 , 000
$1 0 0 , 0 0 0
46
( total o f three
( total o f two
Amount and Type o f

From
Count
Date
19
7 - 1 5 - 20 0 5
Meri c l e
Construc t ion ,
Inc .
$ 1 , 0 0 0 , 0 0 0 W i re Transfer
20
2 - 3 - 20 0 6
Mer i c l e
Construct i on ,
Inc .
$ 1 5 0 , 0 0 0 Wire Trans fer
21
8- 16 - 0 6
Robe rt Powe l l
$ 4 2 , 0 0 0 Cash
22
11-1-06
Robert Powe l l
$ 20 , 0 0 0 Cash
23
1 1 - 20 - 0 6
Robert Powe l l
$ 5 0 , 0 0 0 Cash
24
12- 1 8- 0 6
Robert Powe l l
$ 31 , 5 0 0 Cash
In v i o l at ion of T i t le 1 8 ,
666 (a) (1) (B) .
47
2 and
Count 2 5
18 u . s . c . 1956 (h)
( Money Laundering Consp i racy )
The a l l egat ions contained in Count s 1 through 2 4 of
93 .
thi s Indi c tment are hereby re - al leged and incorporated by

re f erence as i f ful ly s e t forth here i n .
From on or about January 1 ,
94 .
2 0 01,
o n o r about the date o f thi s Indic tment,

of Pennsylvania and e l s ewhere,
MI CHAEL
T.
CONAHAN
and c ont inuing up t o
i n the Middle D i s t r i c t
the de f endants,
and MARK A .
CIAVARELLA ,
JR . ,
together wi th others known and unknown to the Grand Jury,

knowingly,
intent i ona l ly and wi l f ully combine,
did
onspire,
conf ederate and agree with one another and with other pers ons
known and unknown to the grand j ury to commi t c e rtain o f fens es
agains t the United S ta t e s as f o l lows :
a.
Knowing that the property invo lved in a f inanc ial

trans a c t i on repre s ent ed the proc eeds o f s ome form of
unlawful a c t ivi ty, conduc ted and attempted to conduct a
f inanc i a l t rans ac t ion whi ch in f a c t i nvolved the
proceeds of the spe c i f ied unl awful ac t iv i ty knowing
that the trans act ion was des igned in who l e and in part
to c onc e a l and di sgui se the nature, the l ocat ion, the
s ource, the ownership and the c ontro l o f the proce eds
of a spe c i f ied unlawful ac t iv i ty in v io l at ion of 1 8
u.s.c.
1 95 6 ( a ) ( 1 ) ( B ) ( i ) ;
b.
and,
To knowingly engage and attemp t to engage in one or

more mone tary trans act i on ( s ) in c rimina l l y derived
property that was o f a value greater than $ 1 0 , 0 0 0 and
whi c h was derived f rom spec i f i e d unlawful a c t ivity,
name ly, wire f raud and extort i on , in v i o l at ion of 1 8
48
u.s .c.
19 57 .
In violat ion of T i t l e 1 8 ,
Uni t e d States Code ,
49
1956 (h) .
Count 2 6
1956 (a) (1 ) (B) ( i )
18 U. S . C .
( Money Launde ring )
95 .
The Grand Jury he reby incorporates by re f erenc e ,
though ful ly set forth here in ,
as
each of the a l l e gat ions contained
in Counts 1 through 2 5 of thi s Indictment .

96 .
On or about January 2 0 ,
Pennsylvania ,
and e l s ewhere ,
MI CHAEL T .
2004 ,
the de f endant s ,
C IAVARELLA ,
JR . ,
each ai ding and ab e t t i ng the other and each a i ded and abetted by
the o ther and by other pe rsons known and unknown ,
and in tent iona l ly conduc t ,
did knowing ly
att empt to conduct and did caus e to be
conduc ted a f inanc i a l transac t i on a f f ect ing interstate commerce ,

to wit ,
the depo s i t i ng of t he f o l l owing two checks :
a.
Chec k numbe r 1 0 1 in t he amount o f $ 1 8 , 0 0 0 ,

ident i f i e d on the face o f the check as " Rent
Prepay , " and
b.
Chec k numbe r 1 0 0 2 in the amount of $ 5 2 , 0 0 0 , i dent i f ied

on the f a c e o f t he check as "Rent /Marine Prepay , "
i s s ued to the Pinnac le Group o f Jupiter ,
LLC ,
proceeds o f a spec i f i ed unlawf ul act ivity ,

under color of o f f i c ial r i ght ,
whi c h i nvolved the
that i s ,
in viol at ion of
extortion
18 u . s . c .
1951 ,
knowing that the t ransac t i ons we re de s igned i n who l e and in part

to concea l and d i s gu i s e the nature ,
locat ion ,
s ourc e ,
owne rship
and c ontro l of the proceeds of s a i d spec i f i ed unl awful ac tivit y
50
and that whi le conduct ing and at tempting to c onduct such

f inanc ial trans ac t i ons knew that the prope rty invo lved in the
f inanc ial t rans act i ons ,
that i s ,
funds in the amount of $7 0 ,0 0 0 ,
represented the proceeds of some form o f unl awful act ivity .
In violat i on o f T i t l e 1 8 ,
1956 (a) ( 1 ) (B) ( i )
Uni ted S tates Code,
and 2 .
51
Count 2 7
1956 ( a) ( 1 ) (B) ( i )
18 U . S . C .
( Money Laundering )
97 .
The Grand Jury hereby incorpora t e s by re f e rence ,
though ful ly set f orth herein ,
as
each o f t he a l l egat i ons contained
in Count s 1 through 2 6 o f thi s Indic tment .

98 .
On or about February 2 4 ,
of Pennsylvani a and e l s ewhere ,

M I CHAEL T .
2 0 04 ,
in the Middle Dis trict
the defendant s ,
CIAVARELLA ,
JR . ,
each aiding and abe t t i ng the o ther and e ach a i ded and abet ted by
the o ther and by other pers ons known and unknown ,
conduc t ,
did knowingly
attempt to conduct and did c aus e to be c onduc ted a
f inanc ial transa c t ion af f e c t ing interstate comme rc e ,
to wit ,
the
depos i t ing of the f o l l owing three checks :

1.
Check number 1 6 1 in the amount o f $ 7 8 , 0 0 0 ,

i dent i f ied on the face o f the che ck as " Re s erving
Lease , "
2.
Check number 1 6 2 in the amount of $ 7 5 , 0 0 0 , ident i f ied

on the face o f the check as " Rental Feb - Mar Apri l , " and
3.
Check number 1 6 3 in the amount o f $ 4 7 , 0 0 0 ,

ident i f ied on the face o f the che c k as " S l ip
Renta l / Fee s Jan - Fe b - March & Apri l , "
i s sued to the P i nnac l e Group o f Jup i ter ,
LLC whi c h involved the
proceeds of a spec i f i e d unl awful act ivi ty ,

under color o f o f f ic ia l right ,
that i s ,
extort ion
in violation o f 1 8 U . S . C .
1951 ,
knowing that the t rans act ion was de s igned in who l e and in part to
52
conceal and d i s gu i s e the nature, l ocat ion ,
source , ownership and
control o f the proceeds of said spec i f ied unlawful a c t ivity and

that whi l e conduct i on and a t t empt i ng to conduc t such f inanc ial
t ransact ion knew that the property invo lved in the f i nanc ial
t ransaction ,
that is f unds in the amount o f $20 0 , 0 0 0 repres ented
the proceeds of some form of unlawful ac t iv i ty.
In vio lat i on o f T i t l e 1 8 ,
1 9 56 ( a ) ( 1 ) ( B ) ( i )
Uni ted S ta t e s Code,
and 2.
53
Count 2 8
1 9 5 6 ( a) ( 1 ) ( B ) ( i )
18 U. S . C.
99 .
The Grand Jury hereby incorporates by ref erence , as
though ful ly set f orth here i n , e ach o f the a l legat ions contained
in Count s 1 through 2 7 of thi s Indic tment .
100 .
On or about May 3 ,
Pennsylvania and e l s ewhere ,
2 0 0 4 , i n the M i ddle D i s trict of
the de f endants ,
MI CHAEL T . CONAHAN and MARK A . CIAVARELLA , JR . ,

each aiding and abe t ting the other and each a i de d and abe tted by
the other and by other persons known and unknown ,
did knowingly
conduct , attempt t o conduct and did c ause t o be c onducted a

f i nanc ial transac t ion a f f e c t ing interstate c ommerce ,
depo s i t ing o f the f o l l owing two
to wit , the
check s :
1.
Check number 1 7 6 i n the amount o f $ 7 5 , 0 0 0 ,

ident i f i ed on the face o f the che c k as " Lease
Expens e s Apri l May June , " and
2.
Check number 1 7 7 i n the amount of $ 2 5 , 0 0 0 ,

ident i f ie d on the face o f the che c k as " Dock
Expens e s Re lated Apri l May June , "
i s s ued t o the Pinna c l e Group o f Jup i te r , LLC , which involved the

proceeds of a spe c i f i ed unlawful act ivity , t hat i s , extort ion in
violat ion of 18 U . S . C .
1 9 5 1 , knowing that t he transac t i on was
de s igned in who le and in part to conceal and di sgu i s e the nature ,

locat ion , source , ownership and contro l o f the pro ceeds of s aid
54
spe c i f ied unlawful a c t ivity and that whi l e condu c t ing and
attempt ing t o c ondu c t such f inanc ial t rans action knew that the
prop erty involved in the f inanc ial transact ion,
the amount o f $100 , 000 ,
tha t i s ,
repre s ented the proc eeds o f s ome form of
unlawful act ivity.
In violat ion of T i t l e 1 8 ,
1 9 5 6 ( a ) ( 1) ( B ) ( i )
funds in
Uni ted States Code,
and 2.
55
Count 29
1 956 ( a ) ( 1 ) ( B ) ( i )
18 u . s . c .
( Money Launder ing )
101 .
The Grand Jury hereby incorpora t e s by re ference, as
though fully set f orth here in, each o f the al l e gat ions contained
in Count s 1 through 28 of this Ind i c tment .
102 .
On o r about July 12, 2004 , in the Middle D i s tr i c t of
Pennsylvania and e l s ewhere, the de f endant s ,

MICHAEL T .
CONAHAN and MAR K A .
CIAVARELLA, JR . ,
each aiding and abe t t i ng the other and each aided and abet ted by
the other and by othe r persons known and unknown, did knowingly
conduc t, attempt to conduct and did cause to be c onducted a
f inanc ial t rans act ion a f f e c t ing int e r s tate commerce, to wit, a
wire t rans f e r in the amount of $120,000 f rom an account o f Vis ion
Holdings, Inc . , to an account of the Pinna c l e Group of Jupiter,
LLC ,
whi ch involved the proceeds o f a spe c i f ied unl awful
ac t ivi ty, that i s, hones t s e rv i c e s wire f r aud, in violat i on of 1 8

U. S.C.
1 3 4 3 and 1 3 4 6 , extort i on under c o l o r o f o f f i c i a l right,
in violat ion of 18 U . S . C .
Pa . C . S .
1 951, and bribery, in violat ion of 1 8
4 701 ( a ) ( 3 ) , knowing that the transact i on was de s igned
in whole and in part to conceal and d i s gu i s e the nature,

locat ion, s ourc e, ownership and c ontro l of the p roceeds of said
spec i f ied unlawful act ivity and that whi l e conduc t ing and
attempt ing to c onduc t such f inanc i a l t rans act ion knew that the
56
property involved in the f inanc ial t rans act ion, that i s , funds in
the amount of $ 1 20,000, repre s ented the proceeds of some form of
unlawful ac t ivity .
In vio lation o f T i t le 18, United S t a t e s Code,
19 5 6 ( a ) ( 1 ) ( B ) ( i )
and 2 .
57
Count 3 0
18
1956 (a) ( 1 ) ( B ) ( i )
u.s. c .

103 .
The Grand Jury hereby incorporates by re ferenc e , as
though fully s e t forth he rein , each of the a l l e ga t i ons contained

in Count s 1 through 2 9 of thi s Indic tment .
1 04 .
On o r about September 2 3 , 2 0 0 4 ,
in the Middle D i strict
of Pennsylvani a and e l s ewhere , the de fendant s ,

MICHAEL T . CONAHAN and MARK A . CIAVARELLA , JR . ,
each aiding and abe t t ing the other and each aided and abe tted by
the other and by other persons known and unknown , did knowingly
c onduc t , att empt to c onduct and did c aus e to be conducted a
f inanc ial trans act ion a f f e c t ing inters tate commerce ,
to wi t , a
wire t rans f e r in the amount of $ 1 0 0 , 0 0 0 s ent f rom an acc ount o f

Vis ion Ho ldings ,
Inc . to a n account o f the Pinnac le Group o f
Jupiter LLC , which involved the proceeds o f a spec i f ied unlawful

activi ty , that i s , hone s t s ervi c e s wire f raud ,
U. S . C.
1 3 4 3 and 1 3 4 6 ,
in vio lation of 1 8 U . S . C .
Pa . C . S .
in v iolat ion of 1 8
extort ion under color o f o f f ic i a l right ,

1 9 5 1 , and bribery ,
in v i o l ation of 1 8
4 7 0 1 ( a ) ( 3 ) 1 knowing that the trans act ion was de s igned
in whole and in part to conceal and disgui s e the nature ,

locat i on,
s ourc e , ownership and control o f the pro c e eds o f said
spec i f ied unl awful a c t ivity and that whi l e conduc t ing and
attempt ing t o c onduct such f inanc ial transact ion knew that the
58
property involved in the financial transac tio n ,

the amount of $ 10 0 , 0 0 0 ,
that is , funds in
represented the pro c eeds o f some form of
unlawf ul activity.
I n vio lation of Tit l e 18 ,
19 56 ( a ) ( 1 ) ( B ) ( i )
United States Code ,
and 2 .
59
Count s 3 1 - 3 8
1951
18 u. s . c .
( Extor t i on Unde r Co lor o f O f f i c i a l Right )
THE GRAND JURY FURTHER CHARGE S :
The Grand Jury hereby incorporat e s by re ferenc e ,
105 .
though fully s e t fo rth here in ,
as
each o f the a l l egat ions c ontained
in Counts 1 through 3 0 of this Indic tment .

On mul t i p l e occas ions between on or about January 1 ,
106 .
2002 ,
and o n o r about January 1 ,
Pennsylvania ,
and e l s ewhere ,
MI CHAEL T .
20 07 ,
i n the Middle D i s t rict o f
the de f endant s ,
CIAVARELLA ,
JR . ,
each aiding and abe t t ing the other and each a i ded and abe t ted by
the other and by other pers ons known and unknown ,
intent i ona l ly and wi l l fu l ly obs t ruct ,
att emp t to obstruc t ,
did knowing ly ,
de lay and a f f e c t ,
de l ay and a f f e c t ,
comme r c e and the movement
of any art i c l e and commodity in commerce by extort ion ,

terms are de f ined by 1 8 U . S . C .
is :
solic i t ing ,
demanding ,
and
as those
1 9 5 1 ( b ) ( 2 ) and 1 9 5 1 ( b ) ( 3 ) ,
and accept ing prope rty ,
that
that i s ,
payment s in ca s h ,
check and wire t rans f e r f rom PARTICI PANT # 1 ,
with his consent ,
induced by wrong ful u s e o f
f e ar and under co lor
of o f f i c i a l r i ght .
Each o f the f o l l owing payment s ,
the date s indi cated ,
whi c h o c curred on o r about
cons t i tutes a s eparate count of t h i s
Indic tment :
60

Amount and Type of
From
Count
Date
V i s ion
Hol dings, Inc.
$200,000
checks )
( total o f three
31
2- 15- 2004 2 - 24 - 2004
4 - 3 0 - 2004
V i s ion
Ho l dings, Inc .
$100,000
checks )
( total of two
32
33
7 - 1 2 - 2004
Vi s ion
Hol dings, Inc .
$120,000 W i re Trans fer
34
9 - 23 - 2004
V i s ion
Hol dings ,
$100,000 Wire Trans fer
35
8 - 1 6 - 06
Robert Powe l l
$4 2,000 Cash
36
11- 1-06
Robert Powe l l
$20,000 Cash
37
1 1 - 20 - 06
Robert Powe l l
$50,000 Cash
38
1 2 - 18 - 06
Robert Powe l l
$ 3 1,5 00 Cash
Inc .
In violat i on of T i t le 1 8, Uni ted S tates Code, 1 951 and 2 .
61
Count 39
18 u . s . c. 37 1
( Conspi racy to Defraud the Unit ed Stat e s )
The Grand Jury hereby incorporat e s by re ference,
10 7 .
though ful ly s e t forth here in,
as
e ach of the a l legat ions contained
in Count s 1 through 38 of thi s Indic tment .

10 8 .
Be tween on or about January 1, 20 0 2 , and on or about
May 2 1, 20 0 7 , i n the Middle D i s t r i c t of Pennsylvania,

e l s ewhere,
and
the qe f endant s ,
MARK A . CIAVARELLA, JR . ,
did knowingly,
confederate,
intent i onal ly and wi l l ful ly combine,
and agree together wi th one another,
conspire ,
and together
with other pers ons known and unknown to the Grand Jury,
de fraud the United S t a t e s by impeding,
impairing,
to
obs t ruc t ing and
de f eat ing the l awful Government funct ions of the Inte rnal Revenue
Serv i c e of the Treasury Department in the as c ertainment,
computat ion,
a s s e s sment and c o l l e c t ion of the revenue,
to wi t ,
income taxe s .
OVERT ACTS
10 9 .
I n furthe ranc e o f the c onspi racy,
obj e c t s the reo f ,
the f o l lowing overt act s ,
and t o e f f e c t the
among others,
were
comm i t t ed in the Midd l e D i s t r i c t of Pennsylvania and e l s ewhere :

1.
On or about January 21, 2 0 0 3 ,
the de fendant s caused
PART I CI PANT #2 to wire t rans fer $ 6 10 , 0 0 0 to the bank acc ount of

an attorney ;
62
2.
attorney in Schuylki l l County,
2 0 0 3,
the de f e ndant s caused an
Pennsylvania to w i re t rans fer
$ 6 10 , 0 0 0 to an account of Beverage Marke t i ng o f Pennsylvania,

Inc . ;
3.
20 03,
the d e f endant MICHAEL T.
CONAHAN caused $330 , 0 0 0 to be wire trans f erred f rom a bank

account of Beverage Market ing of Pennsylvania, Inc .
account under the c ontrol o f t he defendant MARK A .
to a bank
C IAVARELLA,
JR . ;
4 .
On or about Apri l 3 0 ,
20 0 3,
the de f endant MICHAEL T .
CONAHAN caused $7 5 , 0 0 0 to be w i re trans ferred f rom a bank account

of Beverage Marke t i ng of Pennsylvania,
Inc .
under the control o f the de f endant MARK A .

5.
On or about July 15,
20 0 3,
to a bank acc ount

C IAVARELLA,
JR . ;
the de f e ndant MI CHAEL T .
CONAHAN caused $7 5 , 0 0 0 to be w i re trans ferred from a bank account

of Beverage Market ing o f Penns ylvania, Inc .
under the c ontrol o f the defendant MARK A .
6 . On or about Augus t 13,
20 0 3,
to a bank account
C IAVARELLA,
JR . ;
the d e f endant MI CHAEL T .
CONAHAN dire c t ed that $25, 0 0 0 be wire trans f erred t o a bank

account under the c ontrol of a thi rd party ;
7.
On o r about Augu s t 2 0 ,
20 0 3,
CONAHAN directed that $10 5 , 0 0 0 be trans ferred to a bank account

under the control o f the de fendant MI CHAEL T .
8.
On or about Augus t 29,
20 0 3 ,
CONAHAN ;
CONAHAN c aused a check in the amount of $32 6 , 0 0 0 to be depo s i ted

into a bank account ma intained in the name of the w i f e o f
63
de f endant MICHAEL T .
9.
CONAHAN ;
On or about January 20,
20 0 4 ,
the def endants c aus e d
$18, 0 0 0 t o be depos i t e d in a bank account of the Pinnac l e Group

of Jupi ter, LLC and f a l sely charac t e r i z ed the depo s i t in the
records o f the P innac l e Group o f Jup i t e r, LLC as
"Rent Prepay" ;
On or about January 2 0 , 2 0 0 4 , the de f e ndant s c aused
10 .
$52, 0 0 0 . 0 0 to be depo s i ted in a bank account of the P innacle

Group of Jup i t e r, LLC and f al se l y charac t e r i z ed the depo s i t in
the records o f the Pinnac l e Group of Jup i ter, LLC as " Rent Marine
Prepay" ;
On or about February 24 ,
11 .
$4 7 , 0 0 0
to
be
depo s i t e d
into a bank
20 0 4 ,
the de fendants c aused
a c c ount
of the Pinna c le Group
of Jupi ter, LLC and f a l s ely charac teri z ed the depo s i t in the
records of the P inna c l e Group o f Jup i te r, LLC " S l ip Renta l F e e s " ;
12 .
20 0 4 ,
the de f endants c aused
$ 7 8, 0 0 0 to be depos ited into a bank account of the P inna c le Group

o f Jupi ter, LLC and f a l s e ly charac teri zed the depo s i t in the
records of the Pinna c l e Group o f Jup i t e r, LLC as
"Re s erving
lease" ;
13.
20 0 4 ,
the de f endants c aused
$75, 0 0 0 to be depos i t e d into a bank account of the P inna c l e Group

of Jupite r, LLC and f a l s e ly characteri z ed the depo s i t in the
records of the Pinnac l e Group of Jup i t e r, LLC as
" Rental Feb,
Mar , Apr" ;
14 .
On or about May 3 ,
20 0 4 ,
the de f endants caused $75, 0 0 0
to be depo s i t e d into a bank ac count o f the P inna c l e Group o f
64
Jup i t e r ,
LLC and f a l s e ly character i z e d the depo s i t in the records
of the Pinna c l e Group of Jup i t er, LLC as " Lease Expenses Apr i l
May June " ;
15 .
On or about May 3,
2004 ,
the de f endants caus ed $ 25,000
to be depos i te d into a bank ac count o f the Pinnac l e Group o f

Jup i ter,
LLC and f a l s e ly characte r i z ed the depo s i t i n the records
of the Pinnac l e Group,
LLC as
"Do c k Expens e s Re l ated Apr i l May
June " ;
16 .
On or about July 12 ,
2004 , the de fendant s c aused
$ 120,000 to be wire trans f erred to a bank account of the Pinnac l e

Group o f Jup i t e r,
17.
LLC ;
On or about S eptembe r 23 , 2004 , the de fendants caused
$ 100,000 to be wire trans f erred to a bank acc ount of the Pinnac le

Group o f Jup i ter,
18.
LLC ;
On o r about July 15, 2005, the de f endants c aused
$ 1,000,000 to be wi re t rans ferred to a bank ac count of the

P innac l e Group of Jup i te r,
19.
LLC ;
On or about February 3,
200 6 , the de f endant s caused
$ 150,000 to be wire trans f erred to a bank account of the Pinnacle

Group o f Jup i t er,
20.
LLC ;
On o r about Augus t 16, 200 6 , the de f endant MICHAEL T .
CONAHAN accepted a c ash payment o f $ 4 2,000 ;

21.
On o r about November 1, 200 6 , the de fendant MICHAEL T .
CONAHAN accepted a cash payment o f $ 20,000 ;

22.
On o r about November 20 ,
2006 , the de f endant MICHAEL T .
CONAHAN accepted a cash payment o f $50,000 ;
65
23 .
On or about December 18 1
20 0 6 1
the de f endant M I CHAEL T .
CONAHAN a c c epted a c a s h payment of $3 1 1 50 0 ;

24 .
As furthe r overt ac t s 1
inc o rpora t e s by re f e rence /
the Grand Jury hereby
as though ful ly s e t forth here in 1
of the prec eding and succeeding count s of thi s Indictment .

count c ons t i tutes a s eparate overt ac t in furtheranc e of the
conspi racy .
In v i o l a t i on o f T i t le 18 1
United S taes Code 1
66
371.
each
Each
Count 4 0
26 u . s . c . 7206 ( 1 )
( Subs c ribing and F i l ing a Materia l ly Fal se Tax Re turn )
1 10 .
The Grand Jury hereby incorporates by re f e renc e,
though ful ly set f orth herein,
as
each o f the al lega t ions contained
in Counts 1 through 39 of thi s Indictment .

111 .
On o r about Apr i l 15,
Pennsylvania and e l s ewhere,
20 0 4 ,
t he def endant ,
MI CHAEL T .
a re sident o f Mountaintop,
in the Middle Di s tr i c t of
CONAHAN,
Luz e rne County,
Pennsylvania ,
did
wi l l ful ly make and s ub s c ribe,
and did cau s e to be made and
subscr ibed,
whi c h was ver i f ied by a wri tten
an IRS Form 1 0 4 0 ,
dec l arat ion that it was made under the penal t i e s of perj ury,
and
which he did not b e l ieve to b e t rue and c orre c t a s to every

mate rial mat t e r .
That IRS Form 104 0,
whi c h was p repared and
s i gned in the Middle D i s tr i c t o f Pennsylvania and was f i l ed with

the Internal Revenue S e rvi ce ,
reported the def endant ' s t axab l e
income for the year 20 0 3 to be $230 , 6 7 1 . 0 0 ,

and there knew and be l ieved,
whereas,
as he then
t he def endant ' s actual t axable
income for the year 2 0 0 3 was materially more than that amount .
I n vio lat i on o f T i t le 2 6 ,
67
720 6 ( 1 ) .
Count 4 1
2 6 u. s . c. 7 2 0 6 ( 1 )
( Subs c ribing and F i l ing a Materially Fal s e Tax Re turn )
THE GRAND
112 .
JURY
FURTHER CHARGES :
The Grand Jury hereby incorporates by re ference , as
though fully s e t f orth here in , each o f the al l egat i ons contained

in Count s 1 through 4 0 of this Indictment .
113 .
On o r about Apri l 1 5 ,
2005 ,
i n the Middle D i strict of
Pennsylvania and e l sewhere , the de f endant ,

MICHAEL T . CONAHAN ,
a res ident of Mounta intop ,
Luzerne County ,
Pennsylvani a , did
wi l l fully make and subs cribe , and did cause to be made and
subscribe d , an IRS Form 1 0 4 0 , which was veri f i e d by a written
de clarat ion that i t was made under the pena l t i e s of perj ury , and
which he did no t be l i eve t o be t rue and c o rre c t as to every
material mat ter .
That IRS Form 1 0 4 0 , whi ch was prepared and
s igned in the M i ddle D i s t r i c t o f Pennsylvania and was f i led with

the Internal Revenue Servi c e , report e d the de f endant ' s taxab le
i ncome for the year 2 0 0 4 t o be $ 4 3 7 , 3 0 0 . 0 0 , whereas , a s he then
and there knew and b e l ieve d ,
the de fendant ' s actual t axab l e
income f o r the year 2 0 0 4 was material ly more than that amount .

In violat i on of T i t l e 2 6 , United State s Code ,
68
7206 ( 1) .
Count 4 2
26 u. s .c.
7206 ( 1)
( Subs c ribing and F i l ing a Mate rial ly Fal s e Tax Re turn )
THE GRAND
JURY
1 14 .
FURTHER CHARGES :
The Grand Jury hereby incorporate s by re f erenc e ,
as
though ful l y s e t f orth here i n , each o f the a l l e gat ions conta ined
in Count s 1 through 4 1 of this Indic tment .
115 .
On or about Apr i l 1 5 , 2 0 0 6 ,
in the M i ddle D i s t r i c t of
Pennsylvani a and e l s ewhere , the def endant ,

a re s ident o f Mounta intop , Luzerne County , P ennsylvania ,
did
wi l l ful ly make and sub s cribe , and did c ause to be made and
subscribe d ,
an IRS Form 1 0 4 0 , which was veri f i e d by a wri t t en
dec larat ion that i t was made under the penal t i e s of pertury , and
whi ch he did not b e l ieve to be true and correc t as to every
material matter .
That IRS Form 1 0 4 0 , which was prepared and
s igned in t he Middle D i s t r i c t of Pennsylvania and was f i l ed with

the Interna l Revenue Servi c e , reported the de f e ndant ' s t axable
income for the year 2 0 0 5 to be $ 8 8 9 , 14 8 . 0 0 , whe reas , as he then
and there knew and bel i eved , the de fendant ' s ac tual taxab l e
income f o r the year 2 0 0 5 was mat erially more t han that amount .
In v i o lat ion o f Title 2 6 , United S tate s Code ,
69
7206 ( 1) .
Count 4 3
26 u.s.c. 7 2 0 6 ( 1 )
( Subs cribing and F i l ing a Mat erially Fal se Tax Return )
116 .
The Grand Jury hereby incorporates by re f erenc e , as
though ful l y set forth here in , each of the a l l egat i ons contained
in Counts 1 through 4 2 of thi s Indic tment .
117 .
On or about May 2 1 , 2 0 0 7 ,
in the Middle D i s tric t o f
Pennsylvania and e l s ewhere , t he de fendant ,

a re s ident o f Mountaintop , Luzerne County , P ennsylvania , did
wi l l fu l ly make and sub s c ribe , and did cause to be made and
subscr ibed , an IRS Form 1 0 4 0 X , which was ver i f ied by a wri t ten
dec larat ion that i t was made under the pena l t i e s o f perj ury , and
which he did not be l i eve to be true and correc t a s t o eve ry
material mat ter .
That IRS Form 1 0 4 0X , whi ch was prepared and
s igned in the Middle Di s t r i c t o f Pennsylvania and was f i led with

the Interna l Revenue Service , reported t he de f endant ' s taxable
income for the year 2 0 0 6 to be $ 2 7 3 , 1 1 9 , whereas , as he then and
there knew and bel ieve d , the de fendant ' s actual taxab le income
for the year 2 0 0 6 was material ly more than that amount .
In violat ion o f T i t l e 2 6 , Uni ted S t at e s Code ,
70
7206 ( 1 ) .
Count 4 4
2 6 u . s. c . 7 2 0 6 ( 1 )
( Subs cribing and F i l i ng a Mat erially Fal s e Tax Re turn )
1 18 .
The Grand Jury hereby i ncorporate s by re f e rence,
though ful ly s e t f orth here in,
as
each of the a l l e ga t i ons contained
in Counts 1 through 4 3 of this Indic tment .

1 19.
O n o r about Apri l 15, 2 0 0 4 , i n the M i ddle D i s trict o f
Pennsylvania and e l sewhere,
the de f endant ,
MARK A.
a re sident o f Mountaintop,
CIAVARELLA,
Luz erne County ,
wi l l fu l ly make and sub s c ribe,

subscribed,
JR . ,
Pennsylvania,
did
and did c ause to be made and
an IRS Form 1 0 4 0 , whi c h was ver i f i e d by a writ ten
dec l arat ion that it was made under the pena l t i e s o f perj ury,
and
which he did not be l i eve t o be true and correc t as to every

material mat t e r .
That IRS Form 1 0 4 0 ,
which was p repared and
s i gned i n the Middle D i s t r ic t of Pennsylvania and was f i led with

the Internal Revenue S ervi ce,
reported the de f endant ' s taxable
income for the year 2 0 0 3 to be $56 , 0 2 5 . 0 0 1

and there knew and be l i eved,
whe rea s 1
as he then
the defendant ' s actual t axab l e
income for the year 2 0 0 3 was materially more t han that amount.
In violat ion of T i t l e 2 6 1
71
7206 (1) .
Count 4 5
2 6 u . s . c . 7 20 6 ( 1 )
( Subs c ribing and F i l ing a Materially Fal s e Tax Return)
120 .
The Grand Jury hereby incorporate s by r e f e renc e, as
though fully s e t f orth here in, each of the a l l egat ions contained
in Counts 1 through 4 4 of thi s Indic tment .
121 .
On o r about Apri l 15, 2005, in the Midd l e D i s t r i c t of
Pennsylvania and e l s ewhere ,

MARK A.
the de f endant ,
CIAVARELLA ,
JR. ,
a re s i dent o f Mountaintop, Luz erne County, Pennsylvania, did

wi l l fu l ly make and s ubs cribe ,
and did cause to be made and
sub s cribed ,
which was ver i f ied by a wri t ten
an IRS Form 104 0,
de c laration that it was made under the penal t i e s of perj ury, and
whi ch he did not b e l ieve to be true and c orrec t as t o every
material matter.
That IRS Form 104 0 ,
which was prepared and
s igned in the M i dd l e D i s t r i c t o f Pennsylvania and was f i led with

the Interna l Revenue Servi c e,
reported the de f endant ' s t axab l e
income for the year 2004 t o be $3 1 9 ,4 9 6 . 00, whe reas, a s h e then

and there knew and b e l i eved, the de f endant ' s a c tual t axable
income for the year 2004 was materially more than that amount .
I n v i o l a t i on o f T i t l e 26 , Uni ted S tates Code ,
72
7 2 06 ( 1 ) .
Count 4 6
26 u . s . c . 720 6 ( 1 )
( Subsc ribing and F i l ing a Mat e r i a l ly Fa l s e Tax Return )
122 .
The Grand Jury hereby incorporates by re f erenc e,
though fully s e t forth here in,
as
each of the al legat ions contained
in Counts 1 through 4 5 of thi s Ind i c tment .

123 .
On o r about Apr i l 1 5 ,
20 0 6,
in the Midd l e D i s t r i c t of
Pennsylvania and e l s ewhere, the de f endant,

MARK A .
a re s ident o f Mount aintop,
C IAVARELLA,
JR . ,
Luz e rne County,
Pennsylvania,
did
wi l l fully make and subscr ibe,
and did cau s e to be made and
subscribed,
which was ver i f i e d by a wri tten
an IRS Form 1 0 4 0 ,
dec l arat ion tha t it was made under the pena l t i e s of perj ury,
and
which he did not be l i eve to be true and corre c t as to every

material mat te r .
That IRS Form 1 0 4 0,
whi c h was prepared and
s i gned in the M i ddle D i s t ri c t o f Pennsylvania and was f i l ed with

the Internal Revenue S e rvice,
reported the de f endant ' s taxable
income f or the year 20 0 5 t o be $4 9 6, 6 3 9 . 0 0, whereas,

and there knew and b e l i eved,
as he then
the de f endant ' s ac tual t axabl e
income f or t he year 20 0 5 was material ly more than that amount .

In vio l a t i on of T i t l e 26 ,
73
7 20 6 ( 1 ) .
Count 4 7
26 u . s . c . 720 6 ( 1 )
( Subs c ribing and F i l ing a Mat e rial ly Fal s e Tax Return )
1 24 .
The Grand Jury hereby incorporat e s by re f erence , a s
though fully s e t f orth here in ,
each o f the a l le ga t i ons contai ne d
i n Counts 1 through 4 6 of t h i s Ind i c tment .

1 25 .
On o r about Apr i l 15, 2 0 0 7 , in the Midd l e D i s tr i c t o f
Pennsylvania and e l s ewhere, the de f endant ,

MARK A .
a re s i dent of Mountaintop ,
CIAVARELLA ,
JR .
Luz e rne County ,
Pennsylvania ,
did
wi l l fully make and subscribe , and did caus e to be made and

subscribed ,
an IRS Form 1 0 4 0 , whi c h was ver i f i e d by a written
dec l arat ion that it was made under the pena l t i e s o f perj ury ,
and
which he did n:ot be l i eve to be true and corre c t as t o every

mate r i a l mat t e r .
That IRS Form 1 0 4 0, whi c h was prepared and
s igned in the M i ddle D i s t r i c t of P ennsylvania and was f i led with

the Inte rnal Revenue Servi c e ,
reported the de f endant ' s taxabl e
income f or the year 20 0 6 to b e $72, 1 7 1 . 0 0 , whe reas ,

and there knew and be l ieved ,
as he then
the de fendant ' s ac tual taxable
income f o r the year 20 0 6 was mat e r i a l ly more than that amount .

In vio lat i on o f T i t le 26, Uni ted S t a t e s Code ,
74
7 20 6 ( 1 ) .

Count 4 8
18 u . s . c . 9 82 and 19 6 3
( Fo r f e i ture )
RICO FORFEITURE
126 .
The Grand Jury hereby incorporat e s by reference, as
though ful ly set f orth here in, each of the a l legat ions contained
in Count s 1 through 4 7 of thi s Ind i c tment for the purp o s e o f
a l leging forf e i ture t o the Uni ted States o f Ame r i c a pursuant to
the prov i s i ons of T i t l e 18, Uni ted S tates Code, 19 6 3, and T i t l e
28, United S t a t e s Code, S e c t ion 24 6 1 ( c ) .
Pursuant to Rul e 32 . 2,
Federal Rul e s o f Criminal Procedure, not i c e i s hereby given to

the de f endants that the Uni ted States wi l l s e ek f o r f e i ture a s
part o f any sent ence, in accordance w i th T i t l e 18, Uni t e d States
Code, 1 9 6 3, in the event o f any de f endant ' s conv i c t i on under
Count 1 and Count 2 of thi s Indic tment .
127 .
As a result o f the of fens e s a l l eged in Count 1 and
Count 2 o f thi s Indictment, the de fendant s MI CHAEL T .

MARK A .
CIAVARELLA, JR .
CONAHAN and
sha l l forf e i t to the Uni ted States a l l
property, r e a l and personal, involved i n the afore s t ated

o f f ens e s , and a l l property t raceab l e to such property, inc luding
but not l imi ted to :
a.
a l l inter e s t s acqui red and maintained in v i o l a t ion of

T i t l e 18, Uni ted S tates Code, S e c t ion 1 9 6 2 ;
b.
a l l intere s t s in, s e curi t i e s o f , c l aims against, and

prope rty and contractual r ight s of any kind af f ording a
s ource o f inf luence over, the ent e rpr i s e named and
de s c r ibed herein whi ch the de fendants MI CHAEL T .
CONAHAN and MARK A . CIAVARELLA, JR . es tabl i she d,
operated, contro l le d, conducted, and par t i c ipated in
75

the conduct o f , in v iolat ion of T i t l e 18, Uni t ed S tates
Code, S e c t ion 19 6 2 .
a l l property con s t i tuting or der ived f rom any proceeds
whi ch the de f endant s MICHAEL T . CONAHAN and MARK A .
C IAVARELLA, JR . obtained, di re c t ly o r indirect ly, f rom
racket e e r i ng act ivity in violat ion o f T i t le 18 , United
S tates Code, 19 6 2 .
c.
The property subj e c t to f o rf e i ture to the Uni t ed S tates

pursuant to T i t l e 18, Uni ted S tates Code, S e c t i on 19 6 3 ( a ) ( 1 ) ,
(a) (2)
and
( a ) ( 3 ) , inc lude s, but i s not l imi ted to, the fol lowing
assets :
Uni ted S ta t e s currency in the amount of at least
$2,819,50 0 and all interes t and proceeds t raceable
thereto, in that such sum in the aggregate is property
whi ch was invo lved in the a f ores tated o f f ens es or i s
t raceab l e to such property, i n violat i on o f T i t le 18,
Uni t ed S ta t e s Code , 19 6 2 .
FRAUD AND MONEY LAUNDERING FORFEITURE
128 .
The Grand Jury hereby incorporat e s by re f erence, as
though ful l y s e t f orth herein, each of the a l l ega t i ons contained

in Counts 1 through 4 7 of thi s Indic tment f or the purpose of
a l l e g ing forf e i ture to the Uni ted States of Ame r i c a pursuant to
the prov i s i ons of T i t l e 18, Uni ted States Code, 9 82 .
Pursuant
to Rul e 32 . 2, Federal Rul e s o f Criminal Procedure, not i c e i s

hereby given t o the de f endant s that the Uni ted S tates wi l l seek
f or f e i ture as part of any s entence, in accordance with T i t l e 18,
Uni ted States Code, 9 82, in the event o f any de f endant ' s
conv i c t ion under Count s 3 through 14 and 25 through 3 0 of this
Indic tment .
129 .
As a re sul t of the o f f ense s al l eged in Count s 3
through 14 and 25 t hrough 30 o f this Indi c tment, the de f endants
76

MI CHAEL T .
CIAVARELLA,
the Uni ted S ta t e s all property ,

the a f o re s tated o f f ens e s ,
property ,
JR .
sha l l for f e i t to
rea l and persona l ,
involved in
and all p roperty traceable to such
inc luding but not l imi ted to :
a.
Any p roperty cons t i tut ing or der ived f rom any proc eeds
whi c h the de f endants MICHAEL T . CONAHAN and MARK A .
CIAVARELLA, JR . obtained, dire c t ly or indir e c t ly, f rom
w i re f raud, mai l fraud and money laundering v i olat ions ;
b.
Any p roperty of t he def endant s MICHAEL T . CONAHAN and

MARK A . C IAVARELLA, JR . u s e d and intended t o b e used,
in any manner or part, to c ommit, or to fac i l i tate the
c ommi s s ion o f money l aunde ring v i o lat ions ;
c.
Uni t e d S t ate s currency in t he amount o f $2,819,50 0 and

al l inter e s t and proceeds t raceable the re t o, in that
such sum in the aggregate i s property whi c h was
invo lved in the a fores tated o f f enses or i s traceab l e to
such property , in violat ion of T i t l e 18 , Uni t e d States
Code, 13 4 1 , 13 4 3 , and 1956 .
FORFEITURE OF SUBSTITUTE AS SETS
I f any o f
13 0 .
Indi c tment,
the property des c r ibed in t h i s Count of the
as be ing subj e c t to for f e i ture,
as a re sult of any
ac t ion or omi s s ion of t he de f endants,

a.
Cannot b e located upon the exerc i s e of due di l igence ;
b.
Has been trans ferred or s o l d to ,

t hi rd person ;
c.
Has been placed beyond the j ur i s d i c t ion of the Court ;
d.
Has been subs tant i a l ly diminishe d in value ;
e.
Has been commingled with other property whi c h cannot be

subdivided wi thout d i f f i cu l ty ;
I t i s the intent o f the Uni ted S tate s ,

Uni ted S tat e s Code,
S tates Code,
Code,
or depos i t e d with a
or
pursuant t o T i t l e 18,
S e c t ions 9 82 and 19 6 3 , and T i t l e 2 1, Uni ted
853 ( p ) , as incorporate d by T i t l e 18, Uni ted S tates
9 82 ( b ) ( 1 )
and 28 U . S . C .
24 6 1 ( c ) , to s e e k the forf e i ture

77

o f any sub s t i tute property up to the value o f the above
forf ei table property .
The de f e ndan t s MICHAEL T . CONAHAN and MARK A . C IAVARELLA ,
JR . are j ointly and s everally l i able for the for f e i ture
allegat ions c ontained above .
All pursuant to Title 1 8 , United States Code ,
9 8 2 and
1 9 6 3 ; Titl e 2 8 , Uni t ed S tate s Code , S e c t ion 2 4 6 1 ( c ) ; and , Rule

32 . 2 ,
Fede ral Rul e s of Criminal Procedure .
DENNIS C .
UNITED
S ATTORNEY
78

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Case 3:09-cr-00272-EMK Document 1-2 Filed 09/09/09 Page 1 of 78

UNI TED STATES OF AMERICA

At a l l t ime s material to thi s Indi c tment, the de f endants

CONAHAN and MARK A .

C IAVARELLA, JR. were j udge s of the

Court of Common P le a s f or Lu z e rne County, Pennsylvania.

approximately January of 20 0 2 and January o f 20 0 7 , M I CHAEL T.

approxima t e l y 1 9 9 6 and Novembe r of 20 0 8, MARK A. C IAVARELLA, JR .

approxima t e ly January of 20 0 7 , MARK A. C IAVARELLA, JR. was named

As j udge s o f the Court o f Common P l eas, the de f endants

MI CHAEL T. CONAHAN and MARK A. C IAVARELLA, JR. owed a f idu c i ary

Case 3:09-cr-00272-EMK Document 1-2 Filed 09/09/09 Page 2 of 78

required to file an annual statement of financial interests with

Office of the Pennsylvania Courts maintains a number of offices,

At all times material to this Indictment,

Common Pleas for Luzerne County,

part of the Judicial Branch of

the government of the Commonwealth of Pennsylvania,

of the Pennsylvania Constitution

the Pennsylvania Judicial Code,

THE PURPOSE OF THE DEFENDANTS

The defendants MICHAEL T.

and its activities affected,

United States Code,

abused their positions within the Enterprise to

enrich themselves by improperly taking payments and other things

MEANS AND METHODS OF THE DEFENDANTS

Between approximately June of 20 0 0 and January 1,

the defendants MICHAEL T.

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abused the i r po s i t i ons wi thin the enterpri s e and v i o lated the

The a c t i ons f rom which they derived improper

income inc luded, but were not l imi ted to :

agreement s guarantee ing p l acement of j uveni le o f f enders with PA

We s t ern PA Child Care, LLC

" PA Chi ld Care " )

taking o f f i c i a l act ion to remove funding f rom the

f ac i l itat ing the constru c t ion of j uveni l e

de tention f ac i l i t i e s and a n expans ion t o one o f tho s e f a c i l i t i e s

dire c t ing that

j uven i l e of f enders be lodged at j uveni le de tent i on f ac i l i t ies

and, through the i r

ac t ions, as s i s t ing P a Chi l d Care and We s t e rn PA Chi l d Care to

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agreement i n late 2 0 0 4 wort h approximately $58, 0 0 0 , 0 0 0 .

The de f endant s employed a number of s chemes i n an

a t t empt to hide the income they rec e i ved including,

int roduced PART I C IPANT #1 to a contractor

( here inaf t e r ref erred t o as " PARTICI PANT #2")

who was a f riend of

C IAVARELLA, JR. , for the purp o s e o f locat i ng

PARTI C I PANT #1 and another person, do i ng bus ine s s as PA

acquired l and i n Luz e rne County and ent ered i nto an

CONAHAN, ac t ing in h i s c apac i ty as Pres ident Judge o f Luz erne

Case 3:09-cr-00272-EMK Document 1-2 Filed 09/09/09 Page 5 of 78

The " P l acement

sum of $1 , 314 , 000 and s t ipulated that "[t]he

obl igat ion o f the Court to make payment o f the Rent al

In or about December, 2002, de f endant MI CHAEL T .

CONAHAN, act ing in his capa c i ty as Pres ident Judge of Luzerne

The prac t i c a l e f f e c t o f thi s a c t ion was to c lo s e the

Luz e rne County youth detent i on center .

In or be fore January of 2003, de f endant MICHAEL T .