LAWRENCE COUNTY Officials want money back from nursing home buyer

Officials were trying to reach one of the buyers to get access to the money.
By LAURE CIOFFI
VINDICATOR NEW CASTLE BUREAU
NEW CASTLE, Pa. -- Lawrence County commissioners say they are not lending the county nursing home any more money to make its payroll.
Instead, they suggested the county solicitor go after the more than $500,000 in county money that ended up in the private bank account of a potential buyer, Sylvan Heights Realty Partners.
"I will not vote to bring in outside money when there is other money," said Commissioner Roger DeCarbo of transferring money from the county's general fund to the nursing home account.
County officials need about $30,000 to meet the $87,693 payroll.
The county has already lent the nursing home about $70,000 to meet payroll in the past few months, said Controller Mary Ann Reiter.
Funds have been short at the nursing home since the sale to Sylvan Heights Realty Partners failed in late July.
What happened
Money from private pay patients apparently was deposited into Sylvan's private bank accounts before the sale.
The county controller sought an injunction to freeze that bank account shortly after the money was discovered.
Common Pleas Court Judge J. Craig Cox issued an order that the county controller must sign any checks releasing money from that account. County officials say George Howley, one of the buyers, is the other person who must sign checks leaving that account.
County Chief Clerk-Administrator Charleen Micco said the county solicitor was trying to contact Howley Thursday afternoon to get him to sign off on the money.
An e-mail message received from Howley on Thursday night said that he and partner, John Hadgkiss, approved a $200,000 transfer of money from the account to the county. County officials could not confirm that this morning.
The money was the focus of a report issued earlier this week by county auditors, ZA Consulting of Harrisburg.
Difference of opinion
ZA contends the money should not have gone to Sylvan's bank account.
Howley has maintained that the group was given permission to use that money in an agreement signed in April.
ZA auditors say that is not how they read the sales contract and assets should not have been transferred to Sylvan until after the sale.
The sale was stopped in late July when the Pennsylvania Department of Health pulled its approval over questions about the relationship between the potential buyers and the group managing the home. Both share some of the same partners.
cioffi@vindy.com