LAWRENCE COUNTY Officials seek to get back money from realty company

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By LAURE CIOFFI
VINDICATOR NEW CASTLE BUREAU
NEW CASTLE, Pa. -- Lawrence County officials think they can get back $550,000 from the county nursing home that ended up in an account opened in the name of Sylvan Heights Realty Partners.
Sylvan tried to buy the home, but the sale failed in July when the Pennsylvania Department of Health withdrew its approval at the request of a local state legislator.
The $550,000 apparently came from private-pay patients and insurance at the nursing home.
Commissioners instructed Solicitor John Hodge to get the money back when the county couldn't make payroll at the nursing home two weeks ago.
Hodge informed commissioners this week that the county home administrator has the power to write checks from the account.
County Controller Mary Ann Reiter was also given authority to write checks from the account after seeking a court order to freeze the account when the sale failed.
Reiter said she has no problem withdrawing the money and returning it to county accounts.
"I truly believe that is all county funds in there," she said.
George Howley, one of the potential buyers, said the county had the ability take money from the account at any time, even though it was opened in Sylvan's name.
"County employees opened the account; they can close it down," he said.
Uncertain access
Commissioners said they initially thought they had to get Howley or his partner, John Hadgkiss, to sign the checks to return the money.
Howley said he was contacted two weeks ago and agreed to turn over the money.
The transfer was never made.
Commissioner Ed Fosnaught said there were some conditions placed on the transfer that the county would not agree to.
Howley said he is unaware of any stipulations put on the money's return.
Howley has said the buyers were given authority to use the money through the sales agreement.
He said it was deposited in the bank account by county employees and used to pay salaries and make repairs at the home.
County officials say the sales agreement was never executed and the buyers should not have had access to the money.