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Coolbaugh

Martin

Overman

Four Exeter Township officials are facing charges on allegations they inflated billing on a contract for an emergency services building that never materialized nearly a decade ago, state Attorney General Kathleen G. Kane announced Friday.

Charged were Supervisors John E. Coolbaugh, Richard E. Overman and James W. Dowse and current secretary and former supervisor Mary F. Martin.

According to the criminal complaint, the township received a $50,400 grant from the state Department of Community and Economic Development (DCED) toward the cost of erecting a pre-fabricated EMS building in 2006.

Investigation revealed that the quartet spent nearly $17,000 on contractors with whom they had personal relationships, and who had significantly inflated their bills and billed for services and materials unrelated to the project.

But then they cancelled the project with only a stone pad area constructed, state investigators said.

In 2008, they allegedly signed a letter to DCED containing false statements to conceal the misuse of the DCED grant.

Also alleged:

• Dowse and Overman reported hours of labor at the EMS building site in 2007 which evidence shows they did not actually perform.

• Coolbaugh manipulated the bidding process for the proposed township purchase of a leaf vacuum by providing confidential information about other bids to a favored vendor last year.

According to Kane, the case was referred to her office by Luzerne County District Attorney Stefanie Salavantis due to lack of resources.

Arrests

The four were arrested Friday and all face charges of tampering with public records, conspiracy to commit tampering with public records and unsworn falsification to authorities.

Additional charges were filed against three:

• Coolbaugh — failure to report required information on multiple statements of financial interests and bid rigging.

• Overman — theft by deception.

• Dowse — failure to report required information on multiple statements of financial interests and theft by deception.

The four were arraigned before District Judge David Barilla in Swoyersville and released on $10,000 unsecured bail. Preliminary hearings are scheduled on May 27.

The four did not respond to messages seeking comment.

The two remaining township supervisors — Benjamin Gadomski and John Ruane — could not be reached for comment, but a written statement from them and township Solicitor Gene Molino was faxed to the Times Leader late Friday afternoon.

The statement reads:

“It is disheartening to hear the allegations against Supervisors Coolbaugh, Overman, and Dowse and Township Secretary, Mary Francis Martin. Although we recognize that in our criminal justice system, these individuals are presumed innocent unless and until proven guilty in a court of law, we are nevertheless disappointed to read the allegations contained in the Criminal Complaints filed against them. At this time, our first priority is ensuring that the business and governance of Exeter Township, which includes securing the health, safety, and welfare of its citizens, continues with minimal or no interruptions.”

State Attorney General’s spokesperson Sadie R. Martin said township officials would have to decide whether the four who were charged can continue performing their official duties as they await adjudication.

Pennsylvania’s Constitution bars those convicted of embezzlement of public funds, bribery, perjury “or other infamous crimes” from holding public office.

Dowse has served as an elected supervisor since 1998, and Coolbaugh joined the board of supervisors in 2008.

Overman was first elected in 2004 and is on Tuesday’s primary election ballot seeking one of two Republican nominations for another six-year term. The two other Republican contenders, Robert F. Kile Sr. and Donald B. Kreseski, could not be reached for comment Friday.

Martin served as an appointed township supervisor from March 3, 2008, to Dec. 31, 2009 and has been township secretary/treasurer since the 1970s.

Details

The purpose of the EMS building is unclear because township emergency workers say they did not request the structure.

According to the probable cause affidavit:

The four drafted and signed a letter to DCED in September 2008 that indicated the $16,853 was “not spent in vain,” but investigators said all that was accomplished with this money “was a stone pad that has no use other than as a parking area which was not needed.”

The grant fund payments included $1,200 to John Filip for work that was “worthless” because he is not a registered architect — a lack of qualification known to supervisors when they hired him.

Investigators took issue with $4,370 in grant fund payments to G & Albert Consultants, P.C., for engineering work on the project, saying the amount was a “significantly and fraudulently inflated amount for engineering services for a simple pre-fabricated building without a foundation.” A representative of G & Albert Consultants could not be reached for comment Friday.

The bid-rigging charge against Coolbaugh stemmed from his repeated but unsuccessful attempts to buy a leaf vacuum from Highway Equipment and Supply.

The affidavit said:

Coolbaugh unilaterally decided the township needed the vacuum and obtained a bid of $11,445 from Highway Equipment, but other supervisors said at the Nov. 5, 2014 meeting that at least three other competitive bids were needed.

Two of the three other quotes were lower — $10,999 from F&S Supply Co. Inc. and $11,350 from Stephenson Equipment. After learning of these amounts, Coolbaugh contacted a Highway Equipment employee and encouraged her to come below the lowest quote, and the company submitted a second bid of $10,850.

Coolbaugh made a motion to accept the Highway Equipment bid at the Nov. 19 meeting, but the others rejected the suggestion and accused him of trying to manipulate the bidding process. The other supervisors made a motion to accept the F&S bid, but it failed because Coolbaugh voted no.

Coolbaugh tried to submit the Highway Equipment second bid again on April 1, but his motion wasn’t seconded.

Coolbaugh also failed to disclose his employment, interest and income with John Coolbaugh Excavating on seven required financial interest statements.

Dowse did not report his interest in Dowse’s Gun Store or income from his work as township roadmaster on several financial interest statements.

Investigators said Dowse and Overman also charged for labor they did not perform at the EMS building site — 13 hours at a total $136.50 for Dowse and 10 hours totaling $105 for Overman.

Contractor Brian Peck completed all the work to create the stone pad and told investigators he did not receive help or see Dowse or Overman working at the site during the four days he was there.

Dowse also was physically unable to perform labor at the site because he is physically disabled to the extent that he received disability income from the Social Security Administration during 2007, investigators said.