Powerful Ex-Legislator Charged With Corruption Involving Consulting Firm and Non-Profit

[JPZenger]

Fortunately, the honest rank and file legislators in PA. rose up over the last couple years and overthrew their powerful overlords. One, Mike Veon, has just been charged with corruption involving tax dollars, a consulting firm and a non-profit controlled by Veon. This smells very much like the situation with recently convicted Vince Fumo. Dems need to aggressive about getting these crooks out of our ranks.

http://pittsburghlive.com/x/pittsburghtrib/sports/news/cityregion/s_617864.html

Excerpts:

"State Attorney General Tom Corbett said he is investigating other lawmakers' use of nonprofits after charging a former Democratic House leader Wednesday with misusing millions of tax dollars. A statewide grand jury accused Veon of using the Beaver Initiative for Growth for "his personal and political benefit," said Corbett ...

Every dime spent by BIG came from Pennsylvania taxpayers, Corbett said. BIG, purportedly created to spur economic development, received more than $10 million in state funds. More than $1 million of that went to a consulting firm that did "little or no work" for BIG but agreed to hire Veon's brother Mark at a salary of $160,000 a year, said Corbett.

Of $4.7 million spent by BIG from 2004-06, only 23 percent went to programs or projects. Corbett said 77 percent of BIG's revenue went toward salaries, consultants and administrative costs — including more than $1 million to Delta Development, which did "little to no work."

The grand jury said Veon arranged for his brother, Mark Veon, to get a job with Delta Development."
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Here's another article:

http://thebulletin.us/articles/2009/03/26/news/local_state/doc49cb6685a647c178821315.txt

"During that same period of time, Delta Development made significant political contributions to Veon campaigns and those of other House Democratic candidates.

Mr. Corbett said Delta Development allegedly provided little to no work for the funds they received from BIG.

According to the grand jury, Mr. Veon arranged for his brother, Mark Veon, to receive a position at Delta Development where he was paid more than $100,000 per year. On May 3, 2004, BIG signed a $20,000 a month contract with Delta, and one month later Mr. Veon’s brother began working for the consultants with a $160,000 annual salary."

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One of this firm's infamous successes was lobbying to get the Federal and State governments to pay for a new highway interchange for a suburban shopping mall in western PA.

http://pittsburgh.bizjournals.com/pittsburgh/stories/2005/06/27/story4.html

"...the firm's work here is best known for securing major transportation funding. It was Delta that helped the development partners of Robinson Township and the Pointe at North Fayette in the late 1980s to establish state and federal funding for an interchange on the Parkway West that made those developments possible.

Delta also was involved in securing similar funding for other interchanges in southwestern Pennsylvania."

[JPZenger]

1. More on Delta Development

One of the founders of Delta Development was a guy named Donald F. Mazziotti. He was famous for going around calling himself the "Former Secretary of Commerce for Pennsylvania." In reality, he only worked for a month as the acting secretary - the Legislature refused to confirm him because his former employers gave him large sums of cash when he moved to the government job.

[JPZenger]

2. Veon, the Tobacco Industry Lobbyist

"Defeated Rep. Veon now tobacco lobbyist

Monday, February 12, 2007
By Tom Barnes, Pittsburgh Post-Gazette

http://www.post-gazette.com/pg/07043/761479-100.stm

HARRISBURG -- Former House Democratic Whip Mike Veon said it's unlikely he'll run for political office again because he has created a new consulting/lobbying firm here, called, not surprisingly, Mike Veon & Associates.

So far, however, it's just him, without associates. And his first, and so far only, client is U.S. Tobacco Co., which makes smokeless tobacco and cigars, both of which are targeted to be hit by the state sales tax under Gov. Ed Rendell's budget plan.

Mr. Veon, who for 22 years was a state legislator from Beaver County until he lost in an upset in November, said he'll urge lawmakers not to extend the sales tax to cigars and chewing tobacco for the first time."

[JPZenger]

3. Local Newspaper Printed This Scandal 3 Years Ago

A local newspaper had uncovered most of this scandal a full 3 years ago. Here's a reprint of that article:

http://www.freerepublic.com/focus/f-news/1595363/posts