18 taxpayers testify at treasurer's trial

The deputy treasurer is expected to testify today.
By LAURE CIOFFI
VINDICATOR PENNSYLVANIA BUREAU
FRANKLIN, Pa. -- They came one after the other, each telling the same story.
After taxes were paid by mail in 2003 and by mid-2004, there were delinquent notices from Lawrence County stating money was still owed.
In all, 18 taxpayers took the stand the first day of Lawrence County Treasurer Gary Felasco's trial in Venango County Common Pleas Court in the prosecution's effort to show how the 39-year-old elected official stole thousands of dollars from his office for personal use.
"I'm here to explain to you how the treasurer of Lawrence County systematically, day by day, ripped off the residents of Lawrence County," said Senior Deputy Attorney General Anthony Krastek in his opening statement.
Krastek contends that Felasco stole for three years. The scheme came to light after Felasco was removed from his appointed post as county tax claim bureau director.
Pennsylvania State Police say that after he pocketed cash in the treasurer's office, mailed checks were substituted to balance the books. But those mailed checks were never credited for their payments and those taxpayers' names were sent to the county tax claim bureau as delinquent. Police say Felasco then deleted those names from the delinquent list to cover up the theft.
What happened
The treasurer was arrested Sept. 7 and charged with theft, embezzlement, misapplication of entrusted property of government or financial institutions and a violation of the Pennsylvania public officials Ethics Act. The trial was moved here because of pretrial publicity.
Jurors were selected last week, and opening statements began just before 11 a.m. Monday before senior visiting Judge Michael J. Wherry of Mercer County.
Krastek told the eight-woman, four-man jury that prosecuting Felasco was a burden his office happily accepted.
"While we don't like paying taxes, we understand those tax dollars go for good things. The citizens of Lawrence County were deprived of even that solace," Krastek said.
But Felasco's defense attorney Jim Ross said there are some very big holes in the prosecution's case.
"If you look at the evidence, it just doesn't add up," he said.
The key prosecution witness will be Deputy Treasurer Gloria Conti who, Krastek contends, was used by Felasco to physically take the money.
"Gloria Conti was in a truly precarious situation. We know that he used her. He had her get the money and give it to him," Krastek said.
Conti was given immunity from prosecution in exchange for her testimony. She is expected to testify today.
Other witnesses
Krastek said Conti's husband, Donald, also known as "Ducky," will testify that he went to Felasco and asked him to stop having his wife take the money.
"Mr. Conti talked to the defendant, and the defendant said everything will be OK. 'I'll put the money back,'" Krastek said.
Ross said in his opening statement that more money went into Gloria Conti's bank account than Felasco's account.
Following the steady stream of taxpayer testimony Monday was Georgeann Gall, who took over as county tax claim director in March 2004 after Felasco was fired by the county commissioners.
Gall testified that about a dozen residents and businesses came to her office with canceled checks proving they paid taxes but were never credited.
Phenton Schuffert, director of the county computer department, testified that there were no safeguards in the county computer system to stop anyone from deleting names of people listed as delinquent taxpayers. Schuffert also gave evidence detailing the amount of taxes paid by cash and check from November 2003 to December 2003 -- the period audited that first revealed money was missing.
cioffi@vindy.com