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Wednesday, June 08, 2022

Bethlehem Controller Continuing Investigation Into Charged Budget Director

Bethlehem's former Budget Director, Mark Sivak, was charged late last week with felony theft as a result of a fraudulent scheme in which he was allegedly selling city cellphones through a third party vendor. Millions of dollars pass through city coffers on a routine basis, but the amount of the theft is only about $15,000.  Many of you have wondered why Sivak would throw away his good name (and a pension) over such a paltry sum. Is this just the tip of the iceberg?  Bethlehem City Controller George Yasso shares these concerns, and advised City Council last night that his office's investigation is continuing.   

Yasso credited Deputy Controller Michele Liberto and Accounting Assistant Michelle-Anne Millward with uncovering the fraud. "To be clear, it was not an anonymous hotline tip or an email from a concerned party that spurred this investigation. It was their hard work and diligence, trusting their instinct and sticking to their guns even though the possible outcome was very unpleasant and unsettling. They are the two that deserve the lion'sshare of the credit for the exposure of the incident." 

Yasso also clarified the City's use of a Paypal account,which is something I and others have found troubling.  He stated Paypal has never been used for typical business activities, including city purchases and sales. 

Sivak was using a Paypal account first established in 2012 for the "Buy a Brick" fundraiser for s steelworkers' memorial. It was again used in 2019 for a farmstand initiative involving Bechtold Orchards and the school district. 

Having addressed paypal, Yasso made clear that his office is continuing its investigation. "I personally am not satisfied yet. I know it's ongoing with the District Attorney ... and absolutely 100% ongoing by the Controller's office." 

Yasso expressed his outrage at Sivak's alleged misconduct, going on to say that it does "great damage to the level of trust the public puts into their local government. I hope the fact that Mr. Sivak was caught internally, and the aggressive actions that took place after that, can begin to restore or repair the damage he has caused." 

Yasso concluded by reminding everyone that his office is independently elected and is designed to be a check and balance against the very kind of alleged misconduct that his staff uncovered.  He also repeated his hotline number,(610) 865-7266. 

Mayor Willie Reynolds thanked Yasso. He added, "If what is alleged in the charging documents is proven to be true in a court of law, I'm not sure how Mr. Sivak can sleep at night." 

17 comments:

Anonymous said...

When he is done in Bethlehem, he should come over to Northampton Conty.

Anonymous said...

The Crime of the Century!! But other crimes in the city have occurred with resignations or suspension... Now of course, Mr. Sivak is in the wrong here but I'm curious how much money has been spent by all involved in this investigation? If there is more to this story it may well be money well spent. I'll be waiting.

Anonymous said...

Add my name to the list of those perplexed by this “petty” crime. I’m sure many at City Hall feel a betrayal of trust, but I can’t help but wonder about Reynolds. His tersely-worded statement and the “sleep at night” remark seem to indicate he is on his high horse. Only one way off the horse, Willie, and I don’t know too many willing to break your fall.

Anonymous said...

"seem to indicate he is on his high horse."

i dunno, maybe because he didn't embezzle money from the city? just sayin'...

Bernie O'Hare said...

I am critical of his Willie's insistence that those who wish to reach him must do so by email. That is high-handed. He should be aware that many residents have no internet access or are unwilling to set up email accounts. This is just another barrier to access. But I have no issue with the way Willie has responded to this episode, which he inherited.

Bernie O'Hare said...

"But other crimes in the city have occurred with resignations or suspension... "

Please enlighten us. I personally feel that a low-level employee who steals a small amount should just be fired. I have seen this happen in numerous small governments over the years. But a person who makes decisions about finances and the budget must be held to a higher standard.

Anonymous said...

So this was obviously going on during Bob Donchez’s mayorial term so that makes him a great appointee for the position of Deputy Director of Human Resources in Northampton County, right? Unbelievable and I believe you may have even stated that he was a good person for that position, Bernie. Willie Reynolds should be thinking (maybe writing in an email) “Be careful what you wish (run) for, you just might get (win) it”. What a mess!

Bernie O'Hare said...

As I've indicated several times, there are always going to be people who steal. Sivak was hired long before Bob became Mayor and had earned the trust of everyone. I considered him one of Bethlehem's best, and so did many others. While I am bothered by Eric Evans' failure as Sivak's immediate supervisor to catch what was going on, I think even he would have trouble spotting this. By the way, Bob is undergoing some serious medical issues and I believe he has decided to focus on his health instead of public service.

Anonymous said...

Was this somehow tied to th every sudden departure of Mr. Donchez from his county position?

Anonymous said...

Sad if anyone has health issues now, Bernie, but that has nothing to do with his past eight years as mayor. Remember, the buck has to stop somewhere and the person “in charge” is where it stops.

Bernie O'Hare said...

"Was this somehow tied to th every sudden departure of Mr. Donchez from his county position?"

Completely unrelated. Bob's departure is a result of health concerns.

"Sad if anyone has health issues now, Bernie, but that has nothing to do with his past eight years as mayor. Remember, the buck has to stop somewhere and the person “in charge” is where it stops."

Under this logic, a Mayor should resign if a police officer or firefighter is involved in a DUI. He would have to step down if a code inspector solicited bribes. It would be strict liability, and that is absurd.

I believe Sivak's immediate supervisor needs to answer some questions about his oversight, but I doubt that even he would have reason to suspect criminal behavior.

Anonymous said...

Mr Sivak was well liked by most with whom he dealt with. It is very shocking to all. One can only hope that he deals with this situation to his best and that he is able to receive help if needed.

Anonymous said...

Did the other crimes in the city amount to more than or almost $15,000.00? What type of crimes were committed to cause suspensions?

Anonymous said...

Wasn't there a County employee that embezzled/stole money several years ago? Did the employees supervisor lose their job? If I recall it was almost $100,000.00. Just curious. I don't remember all the details. If I recall properly, The County has had some really big embezzlements.

Anonymous said...

Blogger Bernie O'Hare said...
I am critical of his Willie's insistence that those who wish to reach him must do so by email. That is high-handed. He should be aware that many residents have no internet access or are unwilling to set up email accounts. This is just another barrier to access. But I have no issue with the way Willie has responded to this episode, which he inherited.

June 8, 2022 at 11:27 AM

Bernie,

This is so true. Internet fees easily can run above a Senior's budget not to mention
eye sight. If a mayor is too important to personally speak with citizens, perhaps he should resign.

Bernie O'Hare said...

11:25, That's the biggest embezzlement at the county in decades and it was actually $120,000 over a four-year period. It was discovered by the controller, but he lost his job in the next election for failing to discover it sooner. He had not audited that account for several years. Also, there were big changes made to cash collection throughout the county, with more internal controls. Incidentally, the county got all the money back. So there were consequences beyond the actual thief.

Anonymous said...

This investigation is DEFINITELY NOT OVER!