You are on page 1of 12

Corbetts

Gifts and
Favors
Government benefits
received by some who
gave gifts to Corbett
The Pennsylvania Peoples
Campaign, Progressive Philly
Rising
Page 1


Executive Summary: Is Tom Corbett Above the Law?
While the legislature and the attorney generals office have investigated gift-taking by members
of the General Assembly and a judge, no investigation has begun of the governors taking of
gifts and the receipt of government benefits by some those who gave. This report documents
shocking facts that demand an investigation and pose a stark question: is Gov. Corbett above
the law?
Gov. Corbett has delivered substantial benefits to several people and companies that have
made large gifts to him and his wife. The benefits provided by the governor include
appointments to state commissions, appointments to the board of the state-funded and
controlled Team Pennsylvania which the governor co-chairs, a contract worth hundreds of
thousands of dollars entered into without competitive bidding, and regulatory relief. In some
instances, less than a week separates the date of the gift to the governor and the receipt of a
benefit to the gift-giver.
A review of public records
1
finds that Gov. Corbett and his wife have received a total of
$28,424.66 in significant gifts. Of this total, $18,658.00 came from people and businesses that
do business with or are regulated by the state. Two major gifts, a gown and jacket for Mrs.
Corbett, were given by designer who appears to have received no benefit; therefore, the value
is not included in the $18,658.00. Also, not included in these totals are expenses paid by other
organizations for the governor to attend conferences, meetings or speaking engagements or
gifts that are plainly ceremonial. Gift givers have also made $1,132,050.48 in campaign
contributions to the governor.
Gifts to the Corbetts approach the total value of the cash and jewelry given to legislators and a
judge in the notorious Ali sting operation. But, unlike the Ali scandal, in which no meaningful
quid pro quo has been demonstrated, the governor's gift givers, in several instances, received
favorable actionsappointments to commissions and influential organizations like Team
Pennsylvania Foundation, contracts, grants, and regulatory relief from the Corbett
Administration. Based on the current public record, gift givers to the governor have received
more and bigger benefits from the Corbett Administration than what has been revealed in the
much-heralded Ali sting.

1
Statements of Financial Interest filed by Governor Corbett available online at
http://www.ethicsrulings.state.pa.us/weblink8/CustomSearch.aspx?SearchName=SearchforStatementsofFinancialInterestsf
orms and Campaign Finance Reports available online at
https://www.campaignfinanceonline.state.pa.us/pages/CFReportSearch.aspx
Page 2

In some cases, the giving of the gift and the receipt of a benefit took place close together. The
timing of these gifts and receipt of the benefit add to the need for a full investigation.
Immediate Action Needed
We are calling for a thorough investigation of Gov. Corbetts acceptance of gifts and
subsequent benefits to donors. We are asking the Auditor General, the Attorney General,
the United States Attorney for the Middle District of Pennsylvania, the United States
Department of Justice and/or the Dauphin County District Attorney to begin
investigations. The next governor must re-issue an executive order on his first day banning
employees and officials in the executive branch from accepting gifts. We also are calling for
the General Assembly to pass legislation banning all government officials from accepting gifts
from lobbyists, individuals, and entities that do business with or which are regulated by state
government.
Page 3

GOVERNMENT FOR SALE
Appointments to Commissions and Boards, Favorable Regulatory Action and
Legislation
The gift givers, in several instances, received favorable actionsappointments to commissions
and influential organizations, contracts, regulatory relief from the Corbett Administration, or
passage of favorable legislation. There are two examples when less than a week separated
the date of the gift to the governor and favorable treatment by the governor or his
administration to the gift giver. Repeatedly, a gift is given to the governor and then a benefit
flows to the gift giver. Based on what is in the public record now, gift givers to the governor
have received more and bigger benefits from the Corbett Administration than what has been
revealed in the Ali sting.
A Special Partnership Tom Corbett and Team Pennsylvania Foundation
Team Pennsylvania Foundation (Team PA) is non-profit charitable (501 C 3) organization
created in 1997 to bring business and government together to work on economic development
in the Commonwealth. Its board is comprised of state agency heads, one member from each
legislative chamber, and representatives from local economic development organizations,
utilities, labor unions, lobbying firms, universities, and variety of businesses and industries.
Most of its revenue comes from investments and grants from the Pennsylvania Department of
Community and Economic Development.
In 2001, Gov. Tom Ridge institutionalized Team PA within state government by issuing an
executive order directing state agencies to recognize Team PA as a unique and trusted
partner. On May 3, 2011 Gov. Corbett signed an executive order that strengthened Ridges
order by directing the governor to include Team PA leadership on all relevant state
government commissions, boards, and appointments to other bodies.
A seat on the Team PA board is a coveted plum. Board members can anticipate appointments
to boards and commissions. Board members also get direct access legislators and state
agency heads and to unparalleled business networking opportunities and accompany the
governor on overseas trade missions. Over the last three years, Team PA paid the tab for
Corbetts and his wifes participation in three trade missions, a total of $25,578.84.

Page 4


A CHRONICLE OF GIFTS AND FAVORS (See Appendix)
A review of Corbetts ethics disclosure filings and campaign contributions available online
between 2008 and 2013 shows that:
Corbett and his wife have received a total of $28,424.66 in gifts from people and
businesses.
The gift donors have also made a total of $1,131,050.48 to Corbett in campaign
contributions.
CORBETT GIFT DONORS WHO GAVE GIFTS AND RECEIVED BENEFITS
John Moran
Campaign contributions - $141,833.06
Gifts - $2,324.60
John Moran runs a business empire from Watsontown, Northumberland County. His lines of
business include trucking, rigging, warehousing, security, information services, and
construction. He hauls waste over road and rail for the shale drillers. News reports indicate that
Moran began to haul shale drilling waste the day before Corbett took office as governor, before
he had a determination from the Department of Environmental Protection (DEP) that the
operation did not need a permit.
Moran joined the Team PA board in June of 2011 shortly after Corbett signed the new
executive order that directs the governor to appoint Team PA leadership to all relevant boards,
commissions and other bodies. About a week after being appointed to the board, Moran
treated Corbett and his wife to a luxury yacht vacation in Rhode Island. A few weeks later, in
September, Corbett appointed John Moran to the Advisory Council on Privatization and
Innovation and Mrs. Moran to the Pennsylvania Museum and Historical Commission. The day
after the appointments, Moran provided Corbett with free air transportation on Morans private
plane and helicopter. In March of 2012, Moran accompanied Corbett on the trade mission to
France and Germany.
During the same time the DEP ruled that Moran did not need a permit to operate a gas drilling
waste hauling operation in Sunbury. In June of 2012, Moran was named co-chair of Team PA
at the governors urging.
Heres the timeline:
Between 2008 and 2013, Moran contributed a total of $141,883.06 to Corbetts
campaign.
Page 5

In December 2010, Corbett named Moran to the Economic Development Committee of
his transition team.
On June 26, 2011, Moran joined the board of Team PA, an economic development
organization made up of state officials and private businesses.
On July 1, 2011, Moran gave Corbett a four-day vacation on his private yacht in
Newport, Rhode Island worth $1,422.80. Corbett initially failed to disclose the gift on his
2011 ethics disclosure form, but amended it later to show the gift.
On September 29, 2011 Corbett appointed Mrs. Ann Moran, Johns wife, to the
Pennsylvania Historical and Museum Commission.
On September 29, 2011, he appointed Mr. Moran to the Advisory Council on
Privatization and Innovation Commission.
On September 30, 2011 Moran provide Corbett and his wife free air transportation with
a value of $901.80 on his private helicopter and airplane.
On March 8 - 23 of 2012, Moran, in his capacity as a Team PA board member,
accompanied Corbett and Corbetts wife on a trade mission to France and Germany.
Corbetts and his wifes ethics filings show that Team PA paid the $10,856.00 cost for
each of them.
On March 16, 2012 DEP deemed that Moran did not need a permit to operate a truck-
to-train gas drilling waste hauling business in Sunbury.
On June 18, 2012, at Corbetts urging, Moran was named the private sector co-chair of
Team PA. The government sector chair is Corbett.
Team PA paid $1,154 for Corbett to travel to Silicon Valley, California for a trade
mission on September 13-15, 2012
Team PA paid $13,568.84 for Corbett to travel to South America for a trade mission on
April 6-17, 2013. News accounts indicate that Susan Corbett also went, but her 2013
ethics filing is not yet available on the Ethics Commission website.
On November 22, 2013, Moran took over a distressed commercial property in
Harrisburg for under $300,000.
Moran has clearly benefited from his close relationship with the governor, receiving
appointments to a board and commission where he can establish and strengthen business
connections at the highest level. Corbett made appointments of both Morans to influential
commissions within weeks of accepting a free vacation on Morans yacht.
Blank Rome
Campaign contributions - $54,211.96
Gifts - $10,065
Page 6

Blank Rome is a high-powered law firm with an office in Philadelphia. Between 2008 and 2013,
Blank Rome employees have contributed $54,211.96 to Corbetts political campaigns. The
largest contribution was reported on December 31, 2012.
In 2008 and 2010 this law firm also treated Corbett and his wife to premium tickets valued at
$10,000 to fundraisers for the Philadelphia Academy of Music. In 2010, Blank Rome bought
Corbett a $65 ticket to the Phillies home opener.
In January 2013, Corbett gave Blank Rome a $200,000 contract to defend his administration
from a lawsuit filed by AFSCME against his plan to privatize the Pennsylvania Lottery.
Vahan Gureghian
Campaign contributions - $332,714.25
Gifts - $500
Vahan Gureghian, Corbetts biggest single campaign donor, owns Charter School
Management, Inc. (CSMI) which owns and operates or provides back-office support for charter
schools in nine states. Between 2008 and 2013, he donated $332,714.25 to Corbetts political
campaigns. The contributions include $136,714.25 in 2009. The 2009 contributions include two
in November in amounts of $34,285.68 and $1,428.57. His 2010 Corbett campaign
contributions totaled $190,000. In November 2009, Gureghian gave Corbett two World Series
shirts worth $400, and in December the same year, he sent Corbett a gift basked valued at
$100.
Gureghian still operates Chester Community Charter School, the first charter school he
founded. Chester Community Charter School is the largest bricks and mortar school in the
state enrolling half of Chesters school children. He owns the buildings, hires the teachers, and
runs the schools. Chester Community also pays CSMI a management fee. In 2011, the
Pennsylvania Department of Education opened an investigation of Chester Community for
possible cheating on the Pennsylvania System of School Assessment (PSSA) tests. In
October 2012, the department closed its investigation. The department did find irregularities,
but issued no sanctions against Chester Community.
Frank Schoeneman
Contributions - $48,382
Gifts - $1,406.80
Frank Schoeneman runs Empire Education Group, the nations largest chain of cosmetology
schools. Between 2008 and 2013, Schoeneman contributed $48,382 to Corbetts campaigns.
In January of 2012, he made two separate contributions on the same day of $1,530 and
$3,416.85. In January of 2011, he provided free air transportation to Corbett on his private
plane with a value of $1,406.80.
Page 7

In December of 2012, Corbett signed legislation that lowered the requirements for obtaining a
cosmetology license.
The Silvi Group Companies
Contributions - $49,800
Gifts - $918.11
The Silvi Group provides stone, concrete, and other materials to road-building projects around
the state, including the Route 202 widening project. It also operates stone quarries that are
regulated by DEP. Between July of 2008 and April 2012, John and Laurence Silvi donated a
total of $49,800 to Corbetts campaigns. On February 21, 2009, the Silvi Group gave Corbett a
day in New York City costing $918.11 that included lunch, dinner, hotel and tickets to a
Broadway show.
In December of 2010, Corbett named John Silvi to the Economic Development Committee of
his transition team. In January of 2014, Silvi Concrete received a grant from the
Commonwealth Financing Authority in the amount of $244,222 to construct a public
compressed natural gas fueling station at its concrete plant in Downingtown.
Buchanan Ingersoll Rooney
Contributions - $82,566.69
Gifts - $1,162.13
Buchanan Ingersoll & Rooney is one of the nations largest law and lobbying firms with offices
in Harrisburg, Pittsburgh, and Philadelphia. Between 2008 and 2013, Buchanan employees
donated $82,566.69 to Corbetts campaigns. In March of 2009, the firm treated Corbett to two
dinners with its CEO, Jack Barbour, with a value of $837.15. In January 2011, Buchanan
bought Corbett tickets to two NFL playoff games with a value of $325.00.
Corbett administration advisory boards and commissions are peppered with Buchanan
personnel. There were eight employees of the firm on Corbetts transition team. Corbett named
Jack Barbour chair of the Advisory Council on Privatization and Innovation in September 2011.
The firm represents clients with myriad contracts, proposals, permits, and business with the
Commonwealth, including the gas drilling industry. Buchanan lobbies for a range of legislation
that would benefit both the firm itself and its clients.

Page 8

GIFT DONORS WITH SUBSTANTIAL BUSINESS BEFORE STATE GOVERNMENT OR
REGULATED BY THE STATE
The following gift-givers received no government benefit.
Martin Lane
Contributions - $88,488
Gifts - $1,800
Martin Lane is Chief Operating Officer, General Manager, and President of Aegis Security
Insurance Company in Harrisburg. Between 2008 and 2010 he donated $88,488 to Corbetts
campaigns. In January, he contributed $1,800 to the cost of First Lady Susan Corbetts
inaugural gown.
Lanes insurance business is regulated by the state.
University of Pittsburgh Medical Center (UPMC)/ Robert Kennedy
Contributions - $334,014.32
Gifts - $472.00
Between 2008 and 2013, UPMC employees donated $334,014.32 to Corbetts campaigns. On
New Years Day 2011, Robert Kennedy, UPMCs vice president of government relations,
treated Corbett to the Pittsburgh Penguins Winter Classic Brunch and hockey game with a
value of $472.00.
UPMC is regulated by the state and has been embroiled in disputes with its union employees
and Highmark Insurance.
GIFT DONOR NOT REGULATED BY STATE GOVERNMENT, NOT RECEIVING ANY
BENEFIT
Andries Couture
Gifts - $9766.00
Andries donated a ball gown valued at $8,276.00 to Susan Corbett for the inauguration and
gave her a jacket worth $1,500 for her birthday in 2011.

Page 9

Conclusion
For generations, access, influence, and power in the halls of Pennsylvania state government
have flowed to those who make large campaign donations to politicians.
During the Corbett administration, the cash-corrupted culture of state government morphed
into an even more venal form. Now even huge political donations are not enough -- state
government has entered the age of the big personal gift. Lavish and expensive gifts have
become the icing on the campaign donation cake, and in some instances, the gifts are so
significant that they may be the cake itself.
The man most responsible for creating the culture of giving and taking big gifts by government
officials is Governor Corbett. The taking of the major gifts by Gov. Corbett and the benefits
flowing to some of those who provided the major gift is scandalous. It may also be illegal.
The actions of the governor raise substantial legal issues that should be fully investigated. At
this point, public confidence in state government cannot be restored without such an inquiry as
well as the banning of all gifts to legislators and those working in state government.

APPENDIX
Who
Total
Amount
Campaign
Contributions
Gift
Amounts Gifts Favor Timing
John Moran $144,207 $141,883 $2,324
Free vacations,
free travel, free
flights on private
plane and
helicopter the day
after the Governor
appointed Mr.
Moran to a
government
advisory council.
Placed on
government
advisory board, DEP
ruled his company
did not need
permits, Mrs. Moran
appointed to the PA
Historical and
Museum
Commission.
Moran appointed to
board within weeks of
giving Governor Corbett
and his wife a free
vacation; DEP ruling
between contributions,
while Moran was
traveling with the
Governor in Europe.
Blank Rome law firm $64,276 $54,211 $10,065
Tickets to the
Phillies home
opener and
Philadelphia
Academy of Music.
Given $200,000 no
bid contract to
defend Corbett
Administration in
Lottery privatization
attempt.
Contract given in January
of 2013, days after largest
contribution made to
Governor's campaign.
Vahan Gureghhian $333,214 $332,714 $500
World Series shirts
and food.
Gureghian's charter
school was
investigated for
cheating;
irregularities were
found by the PA
Dept. of Education,
but no criminal or
other action taken
against the school.
Gureghian is Corbett's
largest single donor. The
decision not to act upon
the irregularities was
made in-between
campaign contributions.
Frank Schoeneman $49,788 $48,382 $1,406
Free trips on
Schoeneman's
private plane.
Corbett signs bill
lowering the
requirements for
cosmetology
students to
graduate.
Corbett signed the
legislation helping
Schoeneman's schools in-
between campaign
contributions.
Page 1

Who
Total
Amount
Campaign
Contributions
Gift
Amounts Gifts Favor Timing
The Silvi Group $50,718 $49,800 $918
Trip to NYC, meals,
Broadway show,
hotel stay.
Received a $244,222
grant from the State,
appointment to
boards, contracts to
supply road building
projects.
In between and after
campaign contributions.
Buchanan Ingersoll Rooney $83,718 $82,556 $1,162
Meals, tickets to
NFL playoff games.
Appointments to
advisory boards and
commissions. Eight
employees of the
firm were on
Governor Corbett's
transition team.
In between and after
campaign contributions.
Martin Lane $90,288 $88,488 $1,800
Inaugural gown for
Ms. Corbett.
Business is regulated
by the state, but a
specific favor could
not be identified
Unknown to the public.
Andries Couture $9,776 $0 $9,776
Inaugural gown for
Ms. Corbett.
None Unknown to the public.
Robert Kennedy/UPMC $334,486 $334,014 $472
Meal and hockey
tickets.
Business is regulated
by the state, but a
specific favor could
not be identified
Unknown to the public.




Total Given $1,160,471 $1,132,048 $28,423