PITTSBURGH, Pa. (EYT) — John “Herm” Suplizio, the former DuBois City Manager, was arrested today after being federally indicted by a grand jury on charges of conspiracy and federal program fraud, according to the Department of Justice.
Suplizio, 63, was indicted on five counts along with Roberta Shaffer, 58, a former employee of the city of DuBois.
According to the indictment, Suplizio and Shaffer conspired to divert and steal hundreds of thousands of dollars in city funds.
Beginning in 2008, the duo used the city’s tax identification number to establish secret bank accounts into which they diverted city money, including approximately $60,000 in annual administrative fees from the city’s waste management contract, says the Justice Department.
During the alleged conspiracy, Suplizio and Shaffer made large cash withdrawals from the unaudited accounts, wrote checks to themselves and others, and obtained cashier’s checks with themselves listed as payees—totaling more than $350,000.
Suplizio and Shaffer also allegedly spent more than $450,000 from the accounts toward payments on Suplizio’s personal credit card, which he used to pay for personal vacations, utility bills for his residence, department store purchases, and jewelry store purchases, among other personal expenses.
“Herm Suplizio allegedly funneled city money into secret bank accounts that he and Shaffer controlled and that he could use for his personal benefit, including hundreds of thousands of dollars in personal credit card payments,” said United States Attorney Eric G. Olshan. “Our communities entrust public officials like Suplizio with tremendous authority, and when that trust is violated—as is alleged here—this office and our federal and state law enforcement partners will hold them accountable to the fullest extent of the law.”
“As alleged, the suspects abused their public positions and betrayed the public’s trust all while lining their own pockets with hundreds of thousands of dollars,” said FBI Pittsburgh Special Agent in Charge Mike Nordwall. “The FBI will always root out any and all forms of public corruption. We remain committed to ensuring those who violate the public’s sacred trust are held accountable.”
Pennsylvania Attorney General Michelle Henry thanked federal investigators and prosecutors for their work on the case. “This federal indictment further validates our joint efforts to hold
public officials accountable to the constituents they serve,” she said.
If found guilty on all charges, Suplizio and Shaffer face up to 45 years in prison, a fine of $1.25MM, or both.
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