Charge - Bribery in Official Political Matters.

On or about diverse dates between October 1999 and December 31, 2003, the defendant offered, conferred or agreed to confer upon Richard House the position as "Director of Community Relations" for the Harrisburg Senators Baseball team as consideration for the decision, vote, recommendation or other exercise of offial discretion by the recipient in a judial administration or legislative proceeding.

Page 40,41 of the Grand Jury report.

V. THE HARRISBURG CITY COUNCIL

Richard House was elected to the Harrisburg City Council in 1989 and served for 16 years. He was Council president for 11 of those years. Reed was the mayor throughout House's entire tenure on city council. Of Reed's relationship to the council , House testified "there was a saying-the media always called him the mayor for life. You know if you start reading media clips long enough you start believing them yourself. That was my beginning interpretation of city politics and that's what I meant by saying he ruled with an iron thumb because he never believed in the philosophy that we could agree to disagree. It was always you vote with me or you are the enemy"

Mr. House testified before this Grand Jury and indicated that in 2001, there was a position with the Department of the Auditor General that he wanted. Mr House asked Reed to help him get that job. Reed met with the Auditor General but informed Mr. House that he couldn't help him get the job. Soon after, Reed asked House if he would like to be the director of community relations for the Harrisburg Senators, a position that did not exist previously. With respect to that job, House testified to the quid quo pro which existed, "[Reed] offered me that position because therefore he knew he could control me and he could get me to get all the votes that he needed for all his projects,,," Indeed, Mr House was asked about the existence of a quid quo pro in the following exchange:

Question: "Did you feel… that this job, for instance, was an example of a quid quo pro,in other words, that you understood that you were being given that job in exchange for your vote or the discharge of your official duty?"

Answer: That's how I felt, yes, sir."

He went on to testify that when Reed gave him a job with the Senators, Reed was buying not only just Mr. House's vote but also the votes of those on city council that House could control.

III. HARRISBURG CIVIC BASEBALL CLUB

Page 25,26,27.

Gregory Martini testified before this Grand Jury. Martini served as chairman of the board of directors of the Harrisburg Senators from 1886 to 2006. In 2004, during Martini's tenure, the Harrisburg Redevelopment Authority issued $18 million dollars worth of bonds to pay for the renovations of the Harrisburg Senators stadium facility on City Island. The state was expected to provide grant money for this project as well, however the money was not immediately forthcoming.

Of note for this particular borrowing is that is the Harrisburg Authority did not participate in the financing in any way, but they still received a fee in the amount of $70,000 that was deposited into the special projects fund.

Around the same time, Reed began buying sports memorabilia and imagining some sort of sports museum in the Harrisburg area.

To legitimize that effort, Reed tapped his friend John Levenda to become the only employee of a national sports hall of fame foundation. The question now became how to pay Mr. Levenda. Martini testified he recalled a letter sent to him by Reed in Decemberof 2004 asking the Harrisburg Civic Baseball Club to pay $125,000 to the National Sports Hall of Fame. Martini testified he took direction from Reed and was prepared to cut the check based solely on the letter; no further documentation as to its necessity or proposed use was supplied or requested.

That transaction between Reed and Martini was not consummated in 2004. On January 26, 2005 Reed wrote Martini again, this time requesting a payment of $100,000 for John Levenda. Martini made this payment from Senators bond proceeds based on nothing more than Reed's letter

Martini testified that Reed called him in December of 2009 shortly before he left office, asking if he could store some things in his building. Martini acquiesced and did not press Reed about the reason that he needed the storage or what in particular he would be storing. Martini testified that Reed and other city employees showed up to his office with 15 different sized cartons for storage which they put into the storage area in the basement of his building.

The items remained in his possession until they were turned over to the Office of the Attorney General in 2014.

______________________________

Clarke Madden, Deputy Attorney General July 14, 2015.

So if the museum that he theorized was ever built, the imaginary patrons of that museum might go to a Senators game.

Federally Taxable Guaranteed Variable Rate revenue Bonds Series A 1 2005.

Federally Taxable Guaranteed Revenue Bonds Series A 2 2005.

From the Official Statements.

CERTAIN RELATIONSHIPS.

A member of the Board of the Authority is a partner in Obermayer Rebmann Maxwell & Hippel LLP, which is acting as Co-Bond Counsel and counsel to HCBC.

MEMBERS OF THE REDEVELOPMENT AUTHORITY OF THE CITY OF HARRISBURG

Theresa A. Martini Chair

Charles R. Peguese Vice Chair

Harold E. Dunbar Secretary/Treasurer

Mark S. Stewart Assistant Secretary

Andrew J. Giorgione Member

_________________________________________

Archive June 2008.

Mayor Reed at the Capitol.

Dennis Owens, of ABC 27 News questions Mayor Reed concerning a $150,000 donation from Michael Reinsdorf to the National Sports Hall of Fame run by Reed's longtime friend John Levenda.

A contribution directly from the buyer of the Harrisburg Senators to the foundation.

________________________

Archive 11.25.08

Harrisburg City Council President Thompson Questions Mayor Reed's "Grandiose Plans"

"Mr Reinsdorf told me something different," Linda Thompson questions the Mayor about the $150,000 contribution by the buyer of the Harrisburg Baseball Senators, Michael Reinsdorf.

Reed said, "It was a voluntary contribution and he can tell you that himself.

Thompson, "Mr Reinsdorf told me something different in a lunch meeting, that he was authored by you and also Mr. Andrew Giorgione. Mr. Giorgione was told to be in on the deal, to solidify the Senators sale. He was begrudged about having to do that, and too, that he was told to give $150,000 to the Sports Hall Of Fame."

______________________________________

11.25.08

Harrisburg City Council 2009 Proposed Budget.

Dan Miller: Senators Baseball

Dan Miller asks questions of Mayor Steve Reed. Notice how Reed states "we've been through this before" during Dan's questions of the sale of the Harrisburg Senators baseball team.

Miller drives home the point that $40,000 from the escrow account went to The National Sports Hall of Fame.

Dan continued questioning of the true cost of sale and what Harrisburg netted from the sale, and that the Commerce Bank loan was not paid off.

_____________________________________

December 2008.

Harrisburg City Council - National Sports Hall of Fame Food Services LLC

Harrisburg City Council Vice-President Dan Miller questions solicitor Phil Harper on the status of the company.

National Sports Hall of Fame Food Services, LLC. and its officers.

Miller states that the list of officers of the LLC are.

John Levanda. President

Randy King. Secretary

Thomas Bell. Treasurer

Seated at the table are City Controller James McCarthy, city employees Ed Neilson, Linda Walker and Solicitor Phil Harper

______________________

4.18.2010

Opening night of the new 45 million dollar Metro Bank Park stadium and the introduction of the ownership team, local Reed Team players Greg Rothman and Andy Giorgione are introduced.

Meet the new owners of the Harrisburg Senators.

Mayor Thompson throws out the first pitch.

______________________________________