Uncovering the Alleged Misuse of Public Funds: A Comprehensive Investigation

A criminal investigation has uncovered a troubling pattern of alleged financial misconduct involving a former Williamsport finance director and general manager of River Valley Transit. The investigation alleges that he directed payments to so-called "ghost employees" of the city, a neighboring transit authority, and a pleasure riverboat that is now under different management. This in-depth report delves into the details of the allegations and the potential implications for the community.

Exposing the Alleged Scheme: Uncovering the "Ghost Employees"

Questionable Payments to EMTA and Hiawatha

The investigation alleges that William "Bill" Nichols Jr., the former finance director and general manager of River Valley Transit (RVT), directed payments to individuals who were not performing any work for the entities they were being paid by. According to court documents, these "ghost employees" were first identified when RVT was asked to assume management of the Endless Mountains Transportation Authority (EMTA), a neighboring transportation authority.The statewide grand jury heard testimony that EMTA paid RVT an annual 0,000 management fee, which was supposed to be used to pay salary-related expenses for 34 unnamed RVT employees who were also performing EMTA duties. However, the grand jury identified two individuals who were placed on the EMTA payroll but played no role in managing the authority and performed no tasks related to it.Furthermore, the grand jury learned that a Department of Finance employee received a 0 biweekly paycheck from EMTA, despite having no job responsibilities related to its management. Another Department of Finance employee testified that he received paychecks from both EMTA and the Hiawatha pleasure riverboat, despite performing no work for either entity.

Alleged Misuse of City, State, and Federal Funds

The investigation also revealed that the Hiawatha employees were paid with city funds, rather than the riverboat's own account, during Nichols' tenure. The grand jury learned that RVT utilized a temporary staffing agency, DePasquale Staffing Services, to staff both RVT and the Hiawatha, and that a vast majority of the employees assigned to the Trade and Transit Centre budget were, in fact, dedicated to the riverboat as employees who did not perform work for any city agency.These allegations suggest a pattern of misuse of city, state, and federal funds, as the payments to the "ghost employees" were allegedly directed by Nichols and were not authorized through the proper channels, such as City Council approval for legitimate pay raises.

Confronting the Allegations and Seeking Accountability

The investigation has led to felony charges of theft by failure to make required disposition of funds received and tampering with public records against Nichols, who worked for eight city administrations. The grand jury heard testimony from a former mayor who recalled a conversation with Nichols in 2016, where Nichols suggested the mayor could make some extra money by doing additional work for EMTA. The mayor declined, and later became aware of the unauthorized payments to the two Finance Department employees, confronting them and instructing them to terminate the additional programs.The case is now being prosecuted by the Chief Deputy Attorney General, and Nichols' formal arraignment is scheduled for November 8. The community is awaiting the outcome of this investigation, which has the potential to uncover further details and hold those responsible accountable for the alleged misuse of public funds.