Updated: Koval Charged in Conspiracy To Deprive Allentown of Honest Services

Koval, with Fed Ed,  Robert Glazier and Candida Affa
at a Boyle parking deck ribbon cutting

Former Allentown Controller Mary Ellen Koval was spotted going into the federal building on Wednesday in Allentown, carrying a large box. When she left two hours later, the box was gone. Federal authorities are obviously interested in what's inside that box. But not enough to deter them from charging her for her role in the Queen City public corruption scandal.She was charged yesterday with conspiracy to deprive the citizens of their right to honest services through bribery and kickbacks. She is expected to enter a guilt plea today.

Her attorney may call her a "very classy lady," but an information filed by the United States Attorney brands Koval as a member of a conspiracy that "employed countersurveillance maneuvers and obstructed justice by, among other things, making false statements to Federal Bureau of Investigation (FBI) agents conducting a federal criminal investigation into the relationship between campaign contributions and official action in the City of Allentown."

Though a Controller is required to exercise independent oversight, prosecutors charge that Koval relied on Fed Ed "for political support, including campaign contributions and appointments to boards, commissions, and authorities which exercised actual and perceived authority over individuals and entities in the City of Allentown." After her election, he appointed her to the Allentown Parking Authority.

It's no secret that he raised the money for her 2011 race against Republican Lou Hershman. This included $6,300 from trade unions looking for construction work; $500 from Sean Boyle consultant Sovereign Enterprises; $100 from NIZ King J.B. Reilly; $250 from Boyle Ventures.

Koval is linked to giving one unnamed company a competitive advantage for a contract with the Allentown Parking Authority, which she also headed. The Morning Call has identified this company, called "Donor No. 1," as Jack Rosen, a top Obama fundraiser

Koval at a Boyle groundbreaking, with Candida Affa
and Robert Glazier, both now members of City Council. .

The other unnamed company, identified only as "Donor No. 2," could be Boyle Construction, a major Ed Pawlowski contributor. In September 2014, Boyle was awarded a contract for a 7-level, 1,000-car parking lot, near the hockey arena, with an estimated $22.5 million budget. Boyle was previously awarded a $3.4 million contract for renovations to the former Hess' Parking deck. In an email sent late in 2014, Koval apparently dunned this company for contributions.

In fairness to Sean Boyle, I should note that his firm has been associated with many quality public projects, including the Freemansburg Police Station and the Bethlehem Visitors' Center. He has strongly denied even being questioned by the FBI.

Koval is also linked to entrepreneur Ramzi Haddad, who has already entered a guilty plea.

This information also charges that she and Allentown Mayor Edwin "Fed Ed" Pawlowski lied to federal investigators when they questioned him on July 2, 2015. "On or about July 2, 2015, in order to conceal and continue the conspiracy, Public Official #3 [Fed Ed] made materially false statements to FBI agents who were investigating the conspiracy. For example, Public Official #3 falsely denied knowing whether he had received campaign contributions from Donor #1’s company or its principals when in fact, two days earlier, as Public Official #3 well knew, Donor #1 had donated and bundled tens of thousands of dollars in campaign contributions, which were transferred to Public Official #3’s federal campaign via interstate wires, including the Internet."

Review of Koval's campaign finance reveals little in the way of direct contributions to her in 2015. Most of the money went to Fed Ed. In 2015, she received $4000 from trade unions; $250 from State Rep. Mike "Darth Voter" Schlossberg; $250 from State Rep. Pete Schweyer; and $325 from Citizens for a Better Allentown.

Blogger's Note: First Published 1/13/16, at 3:49 pm.

Updated 1/14/16, 2:40 PM: Donor No. 2 Could Also Be McTish and Kunkel. - I have speculated that Donor No. 2 could be Boyle Constructionj, but a source closer to this investigation than I am tells me Donor No. 2 is actually engineering firm McTish and Kunkel. I don't know whether that is so, but do know that former State Rep. Jennifer Mann represents Matt McTish and his firm in Harrisburg and also doubles doing market development work for the firm in the area. Matt McTish was also ass deep in the whole Turnpike scandal a few years ago. He comes by his aggressive political style quite, dare I say, 'honestly.'