NEW CASTLE Ex-parking chief faces fraud charges

Police believe parking authority money was used to fund the former executive director's bar.
By VIRGINIA ROSS
VINDICATOR CORRESPONDENT
NEW CASTLE, Pa. -- The Pennsylvania State Police's 12-month investigation into activities at the New Castle Parking Authority turned up a trail of fraudulent purchases and the loss of thousands of dollars.
State police charged Donald Edward Pallerino, the parking authority's former executive director, and two former employees in connection with stealing more than $12,000 from the agency.
Matthew Mangino, Lawrence County district attorney, said charges were filed Monday against Pallerino, 55, a former city resident now living in Naples, Fla.
Others: Charges were also filed against Pallerino's son, John, 28, of Cape Coral Fla., and Paul John Cubbal, 49, East Friendship Street here.
Mangino said arrest warrants for the three men also were issued Monday. He said Donald and John Pallerino have been contacted through their attorney and have agreed to turn themselves in. Cubbal has also agreed to turn himself in, Mangino added.
State police said Donald Pallerino served as director from 1987 to August 1999, when he abruptly resigned. His son was employed as a maintenance-enforcement officer from 1998-99. The authority's board fired him in 1999.
Cubbal worked as a maintenance-enforcement officer from 1987 to August 1999, when he also resigned.
The authority has operated independently of the city since 1979. It controls several metered lots in the the downtown as well as the parking garage at 22 N. Mercer St. It also oversees fine collections as well as monthly parking rentals. The city appoints board members and contributes to the authority's annual budget.
Investigation: State police believe the crimes were committed between January 1998 and July 1999.
Mangino said the three men failed to deposit more than $2,000 collected from parking meters and Donald Pallerino used some 73 parking authority checks totaling $8,000 for personal use.
Authorities believe some of that money went into supporting the Draft House, a bar Donald Pallerino owned on South Mill Street. The establishment closed about two years ago.
Mangino said checks were written to several area businesses including 23 to Crisco's Food Equipment; 38 to Automated Fueling Co.; four to Arch Paging, U.S.A. Mobile and Radio Shack; five to Staples Department Store; and one check each to Pennsylvania Power Co., Northern Hydraulics and Desco Lighting Co..
Mangino said checks to Automated Fueling were for gasoline purchases for personal use at a government rate of about 47 cents a gallon. He said between Jan. 3, 1998, and July 20, 1999, about $2,000 in gas was improperly purchased with parking authority funds.
Charges: Donald Pallerino is charged with theft by failure to make required disposition of funds; two counts of theft by unlawful taking; misapplication of entrusted property; theft by deception; access device fraud; two counts of criminal conspiracy; and three counts receiving stolen property.
Cubbal is charged with theft by unlawful taking; two counts of conspiracy; and two counts of receiving stolen property.
John Pallerino is charged with conspiracy and receiving stolen property.
The theft, conspiracy and receiving stolen property charges all are third-degree felony offenses that each carry a maximum penalty of seven years in prison and a $15,000 fine.
Mangino said authorities estimate the three men stole between $12,000 and $14,000 from the parking authority. He said, however, that police cannot determine the exact amount taken because of the authority's poor recording keeping.
"We're still investigating," he said. "Right now, we really have no way of knowing an exact amount. It could be a lot higher."