Small community in Penns Valley reveals nearly $533K loss. Criminal investigation is ongoing
.JPG "A look at the Gregg Township Municipal Building on Thursday.")
A bevy of taxpayers were told Thursday that their small community in Penns Valley lost a substantial amount of money and is involved in a criminal investigation, the latest in a series of disclosures that have raised more questions than answers.
In front of a standing room-only crowd, Gregg Township told its residents a tax accountant estimated that nearly $533,000 was unknowingly spent from its accounts.
When John Lhota, who served as the township’s solicitor, read the number aloud during Thursday’s board of supervisors meeting, one woman simply muttered “Oh my God.”
The township’s statement did not make clear over what period of time the money was lost. Over the course of about 200 words, the township was careful to not use words like “stolen” or “theft.”
Instead, at its June meeting, the township said its prior secretary “appears to have been involved in a series of transactions that resulted in large amounts of money being spent from Township accounts.”
The township initially reported the loss was “well into the hundreds of thousands of dollars.” Thursday marked the first time it offered a preliminary number.
If that amount proves to be in the right ballpark, Lhota said it falls within the township’s bond limits and they expect to be repaid. If the amount changes, Lhota told taxpayers, the township will “certainly let you know.”
Gregg Township declined to share additional information, citing an ongoing criminal investigation. No charges have been filed. State police at Rockview are investigating, a spokesman wrote Friday in a text message to the Centre Daily Times.
The police, the township said, will “have the final say on what actually happened.”
“For now, though, due to the ongoing criminal investigation, we cannot speak on the issue, except to state that, if this is true, we are tremendously disappointed in the actions of the prior secretary, and we are, of course, making sure that nothing like this will happen again,” the township said Thursday in a written statement.
Hiring a new township secretary and treasurer last month were among the actions the Gregg Township board of supervisors took in the wake of its public disclosures. Supervisor Vicky Vanada was hired to the role at a rate that would increase to $22.50 per hour after a three-month review period.
The board also voted unanimously to have each of its supervisors subjected to an annual state police background check.
“There’s been more implemented than there ever has been in the past,” board Chair Charles Stover said in response to a question about what measures the township has taken. “As soon as we can, there will be a complete, full report for the public.”
When pressed by resident Daniel Hall if the report would be published, Stover added: “You don’t need to assume. It’s going to happen.”
One woman who addressed the supervisors Thursday pushed them to be more transparent, saying their meeting minutes were “vague” and that the township’s public statements about the loss were not posted online.
“This is not all of Gregg Township in this room. There are a lot of people that can’t be here,” township resident Kylie Topeka said. “For a lot of talk about transparency, I just feel like it’s a little bit odd that was left so vague.”
Lhota defended the township’s approach, describing the meeting minutes simply as a “summary of what was discussed.” Board Vice Chair Ben Haupt, who was elected and began his term in 2022, then extended an olive branch and offered to speak with Topeka after the meeting.
Faced with questions from taxpayers if the board was lax in its oversight, Haupt spoke with the CDT after the meeting and expressed confidence that the board has taken the appropriate steps in response.
“You need to trust, but verify. We’re putting steps in to have more verification than ever,” Haupt said. “Going forward, that’s what is going to help us to clean this mess up.”
The name of the township’s former secretary and treasurer appeared on meeting minutes since at least January 2019. It last appeared on the township’s May meeting minutes. The minutes for the township’s June meeting were submitted by solicitor David Gaines Jr.
The CDT does not typically name suspects unless they are charged. A request seeking additional information and records under the state’s Right-to-Know Law was submitted by the CDT; the township has not yet responded.
Gregg Township’s next board meeting is scheduled for Sept. 12.
This story was originally published August 9, 2024 at 12:34 PM.