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Former PA Treasurer Barbara Hafer, right, and her attorney, John Knorr, left, leave the Harrisburg Federal Court Building on August 1, 2016
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Trial for ex-Pa. treasure Barbara Hafer set for June

Michael Bryant/Philadelphia Inquirer

Trial for ex-Pa. treasure Barbara Hafer set for June

HARRISBURG — A federal judge on Friday rejected bids by former Pennsylvania Treasurer Barbara Hafer and a millionaire businessman charged with pay-to-play crimes to dismiss the charges against them.

In a pair of rulings, U.S. District Judge John E. Jones in Harrisburg gave the green light for Richard Ireland to go on trial March 9 and for Ms. Hafer to face a separate trial June 12.

Ms. Hafer, 73, treasurer from 1997 until 2004 and a former Allegheny County commissioner, is charged with lying to the FBI in denying that she received $675,000 from Mr. Ireland after leaving office. Before stepping down, she awarded millions of dollars in financial-management contracts to his clients.

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The judge rejected Ms. Hafer’s argument that her denial was not a lie because the money went to her firm and not her personally. In his ruling, Judge Jones wrote that she was free to try to win a jury over with that pitch, but said it was not strong enough on its face to warrant dismissal of the charges.

"A jury could still reasonably find," he wrote in the eight-page opinion, "that she was intentionally deceptive and that it was literally false to state that 'she' was not paid money ... because she received a portion through her interest in the company."

The judge rejected Mr. Ireland's argument that prosecutors failed to spell out the precise quid pro quo allegedly reached between him and another former state treasurer, Rob McCord. Mr. Ireland faces charges of dangling $500,000 in campaign contributions and a job offer before Mr. McCord in exchange for jobs.

The judge said prosecutors had no obligation to show that Mr. McCord took any action in exchange for the gifts, and that it was not enough to prove that Mr. Ireland was trying to illegally influence him. (Mr. McCord is awaiting sentencing on unrelated federal-corruption charges.)

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Moreover, Judge Jones noted, precedent has established that a prosecutor need not tie campaign donations and the like to specific decisions by a politician, but rather must merely demonstrate that the official had given a “stream of benefits” to a defendant.

Mr. Ireland was not charged in connection with his dealings with Ms. Hafer.

Mr. Ireland, 79, who lives on a 160-acre horse farm outside West Chester, has long been a major political donor. Along with owning hotels, he has worked as a “finder,” recommending financial firms to government officials to manage public money and getting paid a share of the contract in return.

Records show that his clients included five firms that paid $65 million to invest Treasury funds over a dozen years. Mr. Ireland's deal called for fees to be split evenly with him, typically year after year, Treasury Department records show. For many years, one of his key clients, Valley Forge Asset Management of King of Prussia, was the No. 1 recipient in Treasury Department fees.

First Published: February 25, 2017, 5:38 a.m.

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Former PA Treasurer Barbara Hafer, right, and her attorney, John Knorr, left, leave the Harrisburg Federal Court Building on August 1, 2016  (Michael Bryant/Philadelphia Inquirer)
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