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Luzerne County’s tax claim operator Northeast Revenue Service LLC is among the companies linked to a pay-to-play scheme that led to corruption charges against the Allentown mayor, but it’s unclear if that association will have any negative ramifications here.
County Manager C. David Pedri said he may seek proposals from companies interested in handling the collection of delinquent taxes and back-tax auctions, but he made no connection to the Allentown situation or statements expressing a determination to replace Northeast Revenue.
Investigators have not charged Northeast Revenue with wrongdoing.
“The contract is up the end of this year, and we’re always in the process of reviewing it,” Pedri said.
A Northeast Revenue representative could not be reached for comment Wednesday.
Allentown Mayor Ed Pawlowski and former Reading Mayor Vaughn Spencer have been charged with multiple counts of bribery and fraud, according to the Associated Press. Indictments detail how the two Democrats allegedly handed lucrative city contracts to donors who showered them with cash and gifts.
Published reports have identified Northeast Revenue among the companies that provided a campaign donation to Pawlowski before being hired.
In 2015, around the time the FBI subpoenaed records from Northeast Revenue, company representative John Rodgers said his company responded to a request-for-proposals to handle collection work in Allentown and was selected based on its experience and success in other jurisdictions.
“At all times, we acted in an ethical and legal manner,” Rodgers said at the time.
Rodgers had donated thousands of dollars to the Jenkintown-based Pennsylvania Liberty Fund political action committee, which in turn had donated thousands to Pawlowski. Rodgers said he did not control or select what donations were made by the committee.
Northeast Revenue has been running Luzerne County’s tax claim office since May 2010, when previous officials opted to privatize the operation to reduce general-fund operating expenses and improve collections. The contract was renewed in 2014.
Northeast Revenue has been credited with turning around the office, which had been criticized for not enforcing mandates and allowing some politically connected defaulters to keep their properties out of auctions with no legal justification.