Arrest of Dubois City Manager John “Herm” Suplizio

[beechboy]

According to a story on WTAJ’s website, most on the missing money, 1/4 million dollars, came from the firemen’s community days accounts and the parade account, about $150,000 and $100,000. That money was probably donated by the people and businesses of the DuBois area and could easily be manipulated. 

[sunflake]

12 minutes ago, beechboy said:

According to a story on WTAJ’s website, most on the missing money, 1/4 million dollars, came from the firemen’s community days accounts and the parade account, about $150,000 and $100,000. That money was probably donated by the people and businesses of the DuBois area and could easily be manipulated. 

Puts a pall over consolidation and fund raising effort for fire department.  Are these funds intact?

 

[rnetzlof]

"...However, Council will remain vigilant in our oversight of City funds and its employees..."

Remain vigilant? If one is to remain vigilant one needs to have been so in the past. In view of recent developments, that seems to have not been so. Perhaps council intends to become vigilant? Perhaps council is busy purchasing locks for some or all of the barn doors?

 

[Pompeii]

DuBois City Manager accused of committing over $620,000 in fraudulent transactions
By Elaine Haskins
and Ben Destefan newsroom@thecourierexpress.com

DuBOIS — On Monday, the Pennsylvania Attorney General’s Office filed felony theft and misdemeanor fraud charges against DuBois City Manager John “Herm” Suplizio, who is accused of committing more than $620,000 in fraudulent transactions from public accounts associated with the City of DuBois, DuBois Area United Way and DuBois Volunteer Fire Department, according to a criminal complaint filed at Magisterial District Judge David Meholick’s office.

According to a press release from the Attorney General’s Office, Suplizio, 62, of DuBois, “allegedly committed $620,815 in fraudulent transactions, using funds from city bank accounts and the DuBois Area United Way account to pay his personal credit card bills, make political donations and gamble. The majority of the funds came from accounts for Community Days, an annual summer event presented by the DuBois Volunteer Fire Department, for which Suplizio and his secretary were the sole signatories.”

Suplizio, who is also the executive director of the DuBois Area United Way, is charged with five third-degree felony counts of theft by unlawful taking; a felony count of restricted activities, eight misdemeanor charges of fraudulent returns and a second-degree misdemeanor of misapplication of entrusted property, according to court documents.

“A Grand Jury investigation found that, in addition to the fraud, Suplizio used his position as city manager to enter into contracts with businesses for which he received personal benefits. From 2014-2021, Suplizio also provided false information on his tax returns, paying for numerous charges with public money and claiming those charges as unreimbursed expenses on his taxes,” according to the press release.

Suplizio waived his preliminary hearing Monday, with unsecured bail set at $100,000. His formal arraignment is scheduled for April 12 in the Clearfield County Annex Courtroom.

Investigation

According to the criminal complaint, the 48th Statewide Investigating Grand Jury conducted an investigation into the alleged misappropriation of funds from the DuBois Area United Way, a nonprofit agency, that ultimately led to the discovery of fraudulent activity in connection with bank accounts held by the City of DuBois.

The complaint states that it was determined that beginning in 2014, Suplizio reportedly stole hundreds of thousands of dollars from these public accounts over which he had signatory authority.

Suplizio is also accused of providing false information on his personal income tax returns for several years, claiming that he incurred unreimbursed expenses in connection with his work for the United Way and the City of DuBois in order to receive a greater refund from the government, according to the complaint.

The Grand Jury heard testimony that on March 13, 2020, an anonymous letter was sent to the Pennsylvania State Police advising that although the United Way has 25 nonprofit groups that are to receive a portion of the money that is donated, Suplizio was allegedly directing the donations to the City of DuBois. The writer enclosed tax forms for the United Way for years 2013-17; a one-page spreadsheet listing the United Way beneficiaries for the years 2013-17; the monetary amounts provided to each entity, and, the totals for the funds listed in the Schedule I form (funds distributed by the United Way) and the 990 Part IX form (reports of funds distributed by the United Way that was prepared by the IRS). The letter was signed, “Anonymously Yours, Concerned Citizens.”

The identity of the writer of the anonymous letter was ultimately confirmed by police and they were able to corroborate the information contained in the letter through witness interviews and a review of financial records, the complaint stated.

Listed in the affidavit was testimony from four people — two from the DuBois Volunteer Fire Department and two from the City of DuBois. Their testimony detailed the structure and finances of the fire department and the structure and financial approvals of the City of DuBois.

Financial analysis

Search warrants were executed on April 6, 2022, at the following locations: Suplizio’s residence on Munroe Street, DuBois; Suplizio’s office at the United Way; and Suplizio’s office and his secretary’s office at the City of DuBois.

Investigating officers seized the following items of note during the execution of the search warrants: A ledger from 2011 to present for Community Days checking account; budgets including income and expenses for Community Days for the year 2019, 2021 and 2022; Suplizio’s tax returns with the corresponding receipts and cash ($1,000 from Suplizio’s office at the United Way; $800 from Suplizio’s office at the city; and $17,000 from his residence).

The financial analysis conducted by investigators showed Suplizio used five public bank accounts for theft and tax fraud, the complaint said. The following three charts summarize Suplizio’s alleged total theft from those public accounts and total tax fraud associated with those public accounts:

Payments from Advanced Disposal, now Waste Management

As part of its contract with the city, Advanced Disposal (ADS) was required to pay a quarterly $15,000 administration fee to the city. Records revealed several $15,000 payments from ADS were deposited into the CD account or Community Fund checking account.

‘Comingling’ of funds within personal accounts

The investigation reviewed 26 personal accounts held by Suplizio alone or jointly with family members. Of those accounts, four accounts appeared to be “comingled” with public funds.

EOG transactions with the city

During the course of investigation, it was learned that the city had engaged in water sales to several fracking companies, one of which was EOG Resources Inc. EOG is a drilling company that was engaged in fracking and natural gas extraction around DuBois. EOG entered into contracts with the city to buy water to assist in these operations. There were reportedly five different transactions involving payments from EOG directly to Suplizio. It was explained that this was a conflict of interest because Suplizio was making agreements on behalf of the city and then benefiting financially from the sales to the company in a personal capacity. The total amount paid by EOG to Suplizio was $12,323.57.

[Nannymimi]

What does the Mayor have to say about this….very quite

[Keyser Soze]

2 hours ago, sunflake said:

Puts a pall over consolidation and fund raising effort for fire department.  Are these funds intact?

 

Maybe a temporary state takeover of the City of DuBois is needed because it appears that there was a systematic failure by all in power.

[block]

1 hour ago, Keyser Soze said:

Maybe a temporary state takeover of the City of DuBois is needed because it appears that there was a systematic failure by all in power.

And yet he still is working?  That's a slap in the face to the citizens of DuBois.  How does the state go about taking over? 

[Petee]

On 3/21/2023 at 10:49 AM, beechboy said:

There should be clarification. Is Toni Cherry the city's attorney or Herm Suplizio's attorney. 

Toni Cherry is the Lawyer for the City.

[Keyser Soze]

2 hours ago, block said:

And yet he still is working?  That's a slap in the face to the citizens of DuBois.  How does the state go about taking over? 

I will ask my contact at the Pennsylvania Department of Community and Economic Development since they have been providing much of the funding for Consolidation and I am sure they want to protect their investment in the new City once consolidation occurs in 2026

[redmill]

Any Pa State employee would , most likely , not comment until after a plea bargain or trial. but try it.

[fedup]

$620,815 over and above one mans normal income. Just how does that stay a big secret in the "BIG" City of Dubois???????

[Basset3]

1 minute ago, fedup said:

$620,815 over and above one mans normal income. Just how does that stay a big secret in the "BIG" City of Dubois???????

Herm is finding out who his "friends" and "enemies" are....stay tuned to this forum for future updates.

[Tkel]

Nice write up in the courier ...the solicitor Toni Cherry , one of Herm's "friends" stating how much of an asset he's been for the city!!! GTFOOH

[Bon]

50 minutes ago, Tkel said:

Nice write up in the courier ...the solicitor Toni Cherry , one of Herm's "friends" stating how much of an asset he's been for the city!!! GTFOOH

Thanks for teaching me new internet slang!! 😁😂🤣🤭

[redmill]

Do PSP organized crime unit investigators , from Erie , being involved indicate they`re over the target ? ....let`s wait n see. $$$ moving all over 

Edited March 23, 2023 by redmill
after thoughts

[JimmyPete]

39 minutes ago, redmill said:

Do PSP organized crime unit investigators , from Erie , being involved indicate they`re over the target ? ....let`s wait n see. $$$ moving all over 

Like you mean other might be involved moving moving?     

 

Trust me,  from my line of work in a state agency, most likely they're already watching certain types of activity.  None of this would happen where I work based on the controls we have in place.    

[buschpounder]

My guess would be organized crime being involved means more than one bad guy.

[FrankT]

Coming This Fall to the city of Dubois 😂

[Petee]

2 hours ago, buschpounder said:

My guess would be organized crime being involved means more than one bad guy.

Does gambling fall under organized crime?

[block]

Just on Fox news at 10 he didn't show for the work session meeting at the City Bldg today.  He's permitted to work but can't do any financial dealings.  Wth?

[Bon]

I’m just curious, does anyone who works for the city/Twp & deals with money, are they bonded?

 

[Pompeii]

7 hours ago, FrankT said:

Coming This Fall to the city of Dubois 😂

Doesn't the city SANDYVILLE, have a nice ring to it?  Sorry DuBois, you're out of money and Sandy Township is taking things over. 

[block]

54 minutes ago, Pompeii said:

Doesn't the city SANDYVILLE, have a nice ring to it?  Sorry DuBois, you're out of money and Sandy Township is taking things over. 

We would probably be better managed 😲

[Keyser Soze]

1 hour ago, Pompeii said:

Doesn't the city SANDYVILLE, have a nice ring to it?  Sorry DuBois, you're out of money and Sandy Township is taking things over. 

When the vote happens in 2025 the voters will have the choice to elect a all Sandy Township City council if they so desire.

[Illiterate]

On 3/22/2023 at 8:58 PM, block said:

And yet he still is working?  That's a slap in the face to the citizens of DuBois.  How does the state go about taking over? 

Paid administrative leave is probably the only other recourse at this time.  Innocent until proven guilty. Have to let the process play out.