Kids for cash scandal

Pennsylvania's Judicial Conduct Board received four complaints about Michael Conahan between 2004 and 2008, but later admitted it failed to investigate any of them, nor had it sought documentation regarding the cases involved.{{cite web |url=http://jjie.org/2010/03/22/getting-the-juvenile-justice-system-to-grow-up/18/ |title=State Failed to Investigate Complaints in Juvenile Court Kickback Scandal |last=Echols |first=Noah |date=March 22, 2010 |website=Juvenile Justice Information Exchange |access-date=December 7, 2016}} The FBI was tipped off about Conahan and nepotism in the county courts in 2006.{{cite news |url=http://citizensvoice.com/news/lokuta-says-conduct-board-kept-conahan-allegations-under-wraps-1.480057 |title=Lokuta says conduct board kept Conahan allegations under wraps |last=Sisak |first=Michael R. |date=December 12, 2009 |newspaper=The Citizens' Voice |access-date=December 7, 2016 |url-status=dead |archive-url=https://web.archive.org/web/20091214020749/http://citizensvoice.com/news/lokuta-says-conduct-board-kept-conahan-allegations-under-wraps-1.480057 |archive-date=December 14, 2009}} An additional investigation into improper sentencing in Luzerne County began in early 2007 as a result of requests for assistance from several youths received by the Philadelphia-based Juvenile Law Center. Attorneys from the Center determined that several hundred cases were tried without the defendants receiving proper counsel. In April 2008, the Center petitioned the Pennsylvania Supreme Court seeking relief for alleged violation of the youths' civil rights. The application of relief was later denied, then reconsidered in January 2009 when corruption charges against both Conahan and Mark Ciavarella surfaced.{{cite web |url=http://www.jlc.org/luzerne/ |title=Luzerne County |date=April 27, 2009 |website=Juvenile Law Center |access-date=May 2, 2009 |url-status=dead |archive-url=https://web.archive.org/web/20100412100902/http://www.jlc.org/luzerne/ |archive-date=April 12, 2010}}

The FBI and the IRS also investigated Conahan and Ciavarella, although the exact dates and scope of these federal investigations were not made public. Part of the investigation was revealed to have occurred during disciplinary hearings over the conduct of another former Luzerne County judge, Ann H. Lokuta.{{cite journal |url=http://www.palawweekly.com/getarticle.aspx?id=28264 |archive-url=https://archive.today/20130131061158/http://www.palawweekly.com/getarticle.aspx?id=28264 |url-status=dead |archive-date=January 31, 2013 |title=Rumors Intensify About Investigation Into Allegations of Luzerne County Case-Fixing |first1=Leo |last1=Strupczewski |first2=Peter |last2=Hall |date=February 9, 2009 |journal=Pennsylvania Law Weekly |access-date=August 27, 2009 }} Lokuta was brought before the Judicial Conduct Board in November 2006 to answer charges of using court workers to do her personal bidding, openly displaying bias against some attorneys arguing before her, and publicly berating staff to cause mental distress.{{cite news |url=https://www.timesleader.com/archive/273865/stories-board3a-lokuta-violated-ethics53491 |title=Board: Lokuta violated ethics |last=Morgan-Besecker |first=Terrie |date=November 5, 2008 |newspaper=Times Leader |access-date=August 27, 2009 }} The board ruled against Lokuta in November 2008, and she was removed from the bench. During the course of the hearings, Lokuta charged that Conahan was behind a conspiracy to have her removed.{{cite news |url=https://www.timesleader.com/archive/266185/stories-witnesses-back-lokuta-claim-of-conspiracy94540 |title=Witnesses back Lokuta claim of conspiracy |last=Morgan-Besecker |first=Terrie |date=August 8, 2009 |newspaper=Times Leader |access-date=August 27, 2009 }} She aided the federal investigation into the "kids for cash" scheme prior to the Conduct Board's ruling, and a stay order was issued in March 2009 by the Pennsylvania Supreme Court in light of the ongoing investigations, halting Lokuta's removal and the special election that was to be held to replace her.{{cite news |url=https://www.timesleader.com/archive/452771/news-ruling__keep_lokuta_seat_off_ballot_03-26-2009-html |title=Ruling: Keep Lokuta seat off ballot |last=Morgan-Besecker |first=Terrie |date=March 26, 2009 |newspaper=Times Leader |access-date=August 27, 2009 }} During the Lokuta hearing, Conahan testified that there were no social relationships amongst the county judges. However, Judge Michael T. Toole (who pleaded guilty to and was convicted in April 2011 of Fraud and Tax Evasion charges{{cite web |url=https://archives.fbi.gov/archives/philadelphia/press-releases/2011/ph040711c.htm |title=Judge Michael T. Toole Sentenced in Federal Court |date=April 7, 2011 |website=FBI Archive website }}) as well as another judge, had each stayed at a Florida condo jointly owned by Conahan and Ciavarella.

The Pennsylvania Supreme Court decided to uphold Lokuta's removal from the bench in January 2011, finding she had received a fair trial, regardless of Conahan's testimony. It also ordered the expungements of the records of 2,401 of those juveniles who were affected.{{cite news |url=http://citizensvoice.com/news/former-judge-lokuta-still-off-the-bench-1.1090664#axzz1EPvrEfw3 |title=Former judge Lokuta still off the bench |last=Janoski |first=Dave |date=January 15, 2011 |newspaper=The Citizen's Voice |access-date=December 7, 2016}}{{cite web |url=http://jjie.org/2013/04/12/prisons-are-no-place-for-profit/ |title=Prisons are no Place for Profit |last=Lash |first=John |date=April 12, 2013 |website=Juvenile Justice Information Exchange |access-date=December 7, 2016}}

A statement from the U.S. Attorney's Office for the Middle District of Pennsylvania outlined the charges against the two judges on January 26, 2009. The charges outlined in the information{{cite web |url=https://www.justice.gov/usao/pam/Corruption/Ciavarella_Conahan/conahan%20and%20ciavarella%20information.pdf |title=United States of America v. Michael T. Conahan and Mark A. Ciavarella, Jr., Defendants |date=January 26, 2009 |website=U.S. Department of Justice for the Middle District of Pennsylvania |access-date=September 12, 2009 |url-status=dead |archive-url=https://web.archive.org/web/20121019024006/http://www.justice.gov/usao/pam/Corruption/Ciavarella_Conahan/conahan%20and%20ciavarella%20information.pdf |archive-date=October 19, 2012}} described actions between 2000 and 2007 by both judges to assist in the construction and population of private juvenile facilities operated by the two Pennsylvania Child Care companies, acting in an official capacity in favor of the private facilities over the facility operated by Luzerne County.{{cite journal |url=http://www.law.com/jsp/nlj/PubArticleNLJ.jsp?id=1202427800493&slreturn=1&hbxlogin=1 |title=Judges to Serve More Than Seven Years in Prison After Pleading Guilty in Kickbacks Probe |first1=Peter |last1=Hall |first2=Leo |last2=Strupczewski |date=January 28, 2009 |journal=The Legal Intelligencer |access-date=August 26, 2009}}

The U.S. Attorney charged that in 2002 Conahan, who at the time was President Judge of the court, used his authority to remove funding for the county-operated facility. The judges were alleged to have received "millions of dollars" in payments for the completion of a binding agreement between the court and the private facilities, co-owned by attorney Robert Powell, to use their services and the subsequent closing of the county facility. The methods used to conceal the payments involved several parties and transactions which resulted in allegations of tax evasion against the two. Ciavarella and Conahan were also charged with "Ordering juveniles to be sent to these facilities in which the judges had a financial interest even when Juvenile Probation Officers did not recommend placement," according to the statement.

Original, negotiated plea agreements called for both judges to serve up to seven years in prison, pay fines and restitution, and accept responsibility for the crimes. However, on July 30, 2009, Judge Edwin M. Kosik of Federal District Court in nearby Scranton rejected the plea agreement, citing "post-guilty plea conduct and expressions from the defendants" that he ruled did not satisfy the terms of the agreement. Kosik wrote that Conahan and Ciavarella continued to deny their crimes even in the face of overwhelming evidence, and therefore did not merit sentences that were well below federal sentencing guidelines.{{cite news |title=Plea Agreement by 2 Judges Is Rejected In Pennsylvania |url=https://www.nytimes.com/2009/08/01/us/01judge.html |last=Urbina |first=Ian |newspaper=The New York Times |date=July 31, 2009 |access-date=August 27, 2009}} Attorneys for the two judges brought a motion requesting reconsideration of the judge's rejection of the plea agreement.{{cite journal |title=Former Pa. Judges Ask for Reconsideration of Rejected Pleas |url=http://www.law.com/jsp/article.jsp?id=1202433222973&Former_Pa_Judges_Ask_for_Reconsideration_of_Rejected_Pleas |first1=Leo |last1=Strupczewski |first2=Hank |last2=Grezlak |journal=The Legal Intelligencer |date=August 21, 2009 |access-date=August 27, 2009}} The motion was denied on August 24, 2009, and Ciavarella and Conahan subsequently withdrew their guilty pleas, an action which eventually resulted in a jury trial for Ciavarella and additional charges against the former judges.{{cite news |url=https://www.timesleader.com/archive/818495/judges-withdraw-guilty-pleas |title=Judges withdraw guilty pleas |last=Morgan-Besecker |first=Terrie |date=August 25, 2009 |newspaper=Times Leader |access-date=August 25, 2009 }}

Following the plea withdrawals, on September 9, 2009, a federal grand jury in Harrisburg, Pennsylvania returned a 48-count indictment{{cite web|url=http://www.wbcitizensvoice.com/pdfs/CONAHAN_CIAVARELLA_INDICTMENT.pdf|title=Indictment – USA v. Conahan and Ciavarella|date=September 9, 2009|access-date=April 1, 2021|archive-date=March 4, 2016|archive-url=https://web.archive.org/web/20160304023400/http://www.wbcitizensvoice.com/pdfs/conahan_ciavarella_indictment.pdf|url-status=dead}} against Ciavarella and Conahan including racketeering, fraud, money laundering, extortion, bribery, and federal tax violations. Both judges were arraigned on the charges on September 15, 2009.{{cite news |url=https://www.timesleader.com/archive/264043/stories-ex-judges-hit-with-48-counts118222 |title=Ex-judges hit with 48 counts |last=Morgan-Besecker |first=Terrie |date=September 10, 2009 |newspaper=Times Leader |access-date=September 11, 2009}}{{cite web |url=http://www.wbcitizensvoice.com/pdfs/racketeering_release.pdf |title=Two Former Luzerne County Court of Common Pleas Judges Indicted on Racketeering, Fraud, Money Laundering, Tax and Related Charges |date=September 9, 2009 |website=U.S. Attorney's Office, Middle District of Pennsylvania |access-date=September 10, 2009 |url-status=dead |archive-url=https://web.archive.org/web/20110304194524/http://www.wbcitizensvoice.com/pdfs/racketeering_release.pdf |archive-date=March 4, 2011}} Ciavarella and Conahan entered pleas of not guilty on all counts and remained free on $1 million in bail, despite federal prosecutors' contentions that their bail should be raised. Prosecutors argued the judges' bail should have been higher, since they faced the possibility of substantially more prison time and there had been evidence of attempts made to shield assets.{{cite news |url=https://www.timesleader.com/archive/268481/stories-ex-jurists-plea2c-still-free101434 |title=Ex-jurists plea, still free Magistrate judge declines to raise bail. Federal prosecutors see Conahan, Ciavarella as flight risks |last=Morgan-Besecker |first=Terrie |date=September 16, 2009 |newspaper=Times Leader |access-date=October 5, 2009}}

Robert Powell, an attorney at the time and co-owner of the two juvenile facilities at the heart of the scandal, pleaded guilty on July 1, 2009, to failing to report a felony and being an accessory to tax evasion conspiracy, in connection with $770,000 in kickbacks he paid to Ciavarella and Conahan in exchange for facilitating the development of his juvenile detention centers.{{cite news |url=http://www.thetimes-tribune.com/news/1.99257 |title=Powell pleads guilty |last=Sisak |first=Michael |date=July 1, 2009 |newspaper=The Scranton Times-Tribune |access-date=August 26, 2009}}{{cite web |title=United States v. Robert Powell |url=http://www.usdoj.gov/usao/pam/Victim_Witness/Luzerne_County_Corruption/Powell/powell_index.html |website=The United States Attorney's Office, Middle District of Pennsylvania |access-date=August 25, 2009}} The Pennsylvania Supreme Court temporarily suspended Powell's law license on August 31, citing his criminal conviction.{{cite news |url=https://www.timesleader.com/archive/818500/pa-court-suspends-powells-law-license |title=Pa. court suspends Powell's law license |last=Lewis |first=Edward |date=September 2, 2009 |newspaper=Times Leader |access-date=September 6, 2009 }} Several years later, in early 2015, after tending his resignation on January 7, he was disbarred by the state supreme court in the state of Pennsylvania on January 23, the disbarment was made retroactive to the date of his suspension on August 31, 2009.{{cite web |url=https://www.pacourts.us/assets/opinions/DisciplinaryBoard/out/119DB2009-Powell.pdf |title=Powell resigns, Disbarred in Pennsylvania |date=January 23, 2015 }}

{{ Visible anchor |Robert Mericle}}, the prominent real estate developer who built the two juvenile facilities, pleaded guilty on September 3, 2009, to failing to disclose a felony. Mericle had failed to tell a grand jury he had paid $2.1 million to Ciavarella and Conahan as a finder's fee. As part of his plea, Mericle agreed to pay $2.15 million to fund local children's health and welfare programs. Mericle faced up to three years in prison and a $250,000 maximum fine.{{cite news |last1=Janoski |first1=Dave |title=Mericle will plead guilty in kids-for-cash scandal |url=http://citizensvoice.com/news/mericle-will-plead-guilty-in-kids-for-cash-scandal-1.183985 |access-date=December 11, 2015 |newspaper=The Citizens' Voice |date=August 14, 2009}}{{cite news |url=http://www.mcall.com/news/nationworld/state/all-a16_kickbacks.6988485aug14,0,250767.story |title=Luzerne builder latest to admit guilt in scandal |last=Dale |first=Maryclaire |date=August 14, 2009 |agency=Associated Press |newspaper=The Morning Call |access-date=August 26, 2009 |url-status=dead |archive-url=https://web.archive.org/web/20090903004413/http://www.mcall.com/news/nationworld/state/all-a16_kickbacks.6988485aug14%2C0%2C250767.story |archive-date=September 3, 2009 }}{{cite web |title=United States v. Robert K. Mericle |url=http://www.usdoj.gov/usao/pam/Victim_Witness/Luzerne_County_Corruption/Mericle/mericle_index.html |website=The United States Attorney's Office, Middle District of Pennsylvania |access-date=August 27, 2009}}{{cite news |url=https://www.timesleader.com/archive/818501/mericle-pleads-guilty |title=Mericle pleads guilty |last=Morgan-Besecker |first=Terrie |date=September 3, 2009 |newspaper=Times Leader |access-date=September 3, 2009 }} Mericle was released from federal custody in 2015 after serving a one-year sentence.{{cite news |title=Robert Mericle released from federal prison |url=http://thetimes-tribune.com/news/robert-mericle-released-from-federal-prison-1.1873258 |access-date=October 1, 2015 |newspaper=The Scranton Times-Tribune |date=April 30, 2015}}

Sandra Brulo, the former deputy director of Forensic Services for the Luzerne County Juvenile Probation Office, agreed to plead guilty in March 2009 to federal obstruction of justice. Those charges stemmed from actions Brulo took after she became aware she had been named in the federal civil action. Brulo backdated her recommendation of a placement she made concerning a juvenile defendant in September 2007, and changed her original recommendation of placement to probation.{{cite web |title=United States v. Sandra Bruno |url=http://www.usdoj.gov/usao/pam/Victim_Witness/Luzerne_County_Corruption/Brulo/brulo_index.html |website=The United States Attorney's Office, Middle District of Pennsylvania |access-date=August 25, 2009}}

File:Mark Ciavarella.jpg mug shot]]

On February 18, 2011, following a trial, a federal jury convicted Ciavarella on 12 of the 39 remaining counts he faced including racketeering, a crime in which prosecutors said the former judge used children "as pawns to enrich himself". In convicting Ciavarella of racketeering, the jury agreed with prosecutors that he and Conahan had taken an illegal payment of nearly $1 million from a youth center's builder, then hid the money.{{cite news |title=Ex-judge Mark A. Ciavarella Jr. guilty in 'cash for kids' case |url=http://articles.philly.com/2011-02-19/news/28611757_1_worst-judicial-scandals-juvenile-law-center-ciavarella |newspaper=The Philadelphia Daily News |access-date=February 21, 2011 |url-status=dead |archive-url=https://web.archive.org/web/20110726010623/http://articles.philly.com/2011-02-19/news/28611757_1_worst-judicial-scandals-juvenile-law-center-ciavarella |archive-date=July 26, 2011}}

The panel of six men and six women also found Ciavarella guilty of "honest services mail fraud" and of being a tax cheat, for failing to list that money and more on his annual public financial-disclosure forms and on four years of tax returns. In addition, they found him guilty of conspiring to launder money. The jurors acquitted Ciavarella of extortion and bribery in connection with $1.9 million that prosecutors said the judges extracted from the builder and owner of two youth centers, including allegations that Ciavarella shared the proceeds of FedEx boxes that were stuffed with tens of thousands of dollars in cash.

Following Ciavarella's conviction, he and his lawyer appeared on the steps of the courthouse to give an impromptu press conference. The press conference was interrupted by Sandy Fonzo, whose son Edward Kenzakoski died by suicide in June 2010 after Ciavarella adjudicated him to placement, despite Kenzakoski's first-time offender status.{{cite news |url=http://www.pennlive.com/midstate/index.ssf/2011/02/mom_blames_luzerne_county_judg.html |title=Mom blames son's suicide on Luzerne County judge in 'kids for cash' case |newspaper=The Patriot-News |access-date=September 17, 2014 |agency=Associated Press |date=February 22, 2011}}

On August 11, 2011, Ciavarella was sentenced to 28 years in federal prison as a result of his conviction.{{cite news |url=http://archive.boston.com/news/nation/articles/2011/08/12/pa_judge_gets_28_years_in_kids_for_cash_case/ |title=Ex-judge given 28-year sentence |last=Rubinkam |first=Michael |date=August 12, 2011 |agency=Associated Press |newspaper=The Boston Globe |access-date=September 14, 2018}} He is currently being held at the Federal Correctional Institution, Ashland, a low-security federal prison in eastern Kentucky.{{cite news |last1=Halpin |first1=James |title=Ciavarella requests hearing in effort to get new trial |url=http://citizensvoice.com/news/ciavarella-requests-hearing-in-effort-to-get-new-trial-1.1907178 |newspaper=The Citizen's Voice |access-date=December 15, 2015}} He is scheduled for release on June 18, 2034, when he would be 84 years old.{{cite web |url=http://www.bop.gov/iloc2/InmateFinderServlet?Transaction=IDSearch&needingMoreList=false&IDType=IRN&IDNumber=15008-067&x=101&y=10 |title=Mark A. Ciavarella |website=Federal Bureau of Prisons |access-date=July 8, 2012 |archive-date=October 4, 2013 |archive-url=https://web.archive.org/web/20131004221415/http://www.bop.gov/iloc2/InmateFinderServlet?Transaction=IDSearch&needingMoreList=false&IDType=IRN&IDNumber=15008-067&x=101&y=10 |url-status=dead }} Ciavarella appealed his conviction to the Third Circuit and it was rejected on July 25, 2013.{{cite news |url=http://thetimes-tribune.com/news/court-denies-civarella-appeal-1.1525776 |title=Court Denies Ciavarella Appeal |date=July 25, 2013 |newspaper=The Scranton Times-Tribune |access-date=September 17, 2014}}

However, Ciavarella has continued to appeal, contending that the Supreme Court's decision in the case of ex-Governor of Virginia Robert McDonnell narrowed the scope of the honest services fraud statute.{{cite journal |url=http://www.nationallawjournal.com/legaltimes/id=1202794986404/Ciavarella-Wants-to-Use-McDonnell-in-Acquittal-Bid |title=Ciavarella Wants to Use 'McDonnell' in Acquittal Bid |last=D'Annunzio |first=P. J. |date=August 8, 2017 |journal=The Legal Intelligencer |access-date=August 9, 2017}} On January 9, 2018, federal judge Christopher C. Conner threw out Ciavarella's convictions for racketeering, conspiracy to commit racketeering, and conspiracy to commit money laundering. Conner upheld Ciavarella's contention that his attorneys failed to raise the statute of limitations claims on those charges. He ordered a new trial on those counts, but allowed the honest services fraud convictions to stand.{{cite news |url=http://citizensvoice.com/news/judge-rules-in-ciavarella-s-favor-in-kids-for-cash-appeal-1.2288319 |title=Judge rules in Ciavarella's favor in kids-for-cash appeal |last=Halpin |first=James |newspaper=The Citizens' Voice |date=January 9, 2018}} On October 1, 2019, Ciavarella was disbarred on consent from the practice of law by the Commonwealth of Pennsylvania.{{cite web |date=October 1, 2019 |title=Office Of Disciplinary Counsel v. Mark A. Ciavarella, Jr. |url=http://www.pacourts.us/assets/opinions/DisciplinaryBoard/out/26DB2012-Ciavarella,%20Jr..pdf |access-date=June 27, 2023 |website=pacourts.us |id=No. 26 DB 2012}}{{Cite web |title=Eight Years Into His 28-Year Prison Sentence, 'Kids-for-Cash' Judge Ciavarella Disbarred |url=https://www.law.com/thelegalintelligencer/2019/10/01/eight-years-into-his-28-year-prison-sentence-kids-for-cash-judge-ciavarella-disbarred/ |website=The Legal Intelligencer}}{{Cite web |last=Leader |first=Times |date=October 1, 2019 |title=Ex-judge Ciavarella disbarred |url=https://www.timesleader.com/news/757450/ex-judge-ciavarella-disbarred |website=Times Leader}}

On September 23, 2011, Conahan was sentenced to {{frac|17|1|2}} years in federal prison after pleading guilty to one count of racketeering conspiracy. Due to coronavirus concerns, he was released from prison and placed under home confinement in June 2020, six years early.{{cite news |url=https://apnews.com/60189fddb66c89e18963299a3c3995c7|title=Kids-for-cash judge released from prison over virus concerns|date=June 23, 2020 |work=AP News |access-date=July 11, 2020 |first1=Michael R. |last1=Sisak |first2=Michael |last2=Balsamo}} On December 11, 2024, President Joe Biden commuted Conahan’s sentence as part of the some 1,500 sentences he commuted for those individuals who had been placed under home confinement during the COVID-19 pandemic, stating that such individuals would have received lower sentences under modern sentencing laws, rules, and policies and "have successfully reintegrated into their families and communities and have shown that they deserve a second chance".{{Cite news |last=Halpin |first=James |date=December 13, 2024 |title=Biden commutes sentence for Kids-for-Cash judge |url=https://www.citizensvoice.com/2024/12/12/biden-commutes-sentence-for-kids-for-cash-judge/ |access-date=December 13, 2024 |work=The Citizens' Voice}}

On November 4, 2011, Powell was sentenced to 18 months in federal prison after pleading guilty to failing to report a felony and being an accessory to tax conspiracy. He was incarcerated at the Federal Prison Camp, Pensacola, a low-security facility in Florida, and was released from a halfway house on April 16, 2013.{{cite web |url=http://m.thetimes-tribune.com/news/kids-for-cash-financier-powell-assigned-to-fla-prison-camp-1.1250164 |title=Kids-for-cash financier Powell assigned to Fla. prison camp |newspaper=The Scranton Times-Tribune |date=December 28, 2011 |access-date=July 8, 2012 |url-status=dead |archive-url=https://web.archive.org/web/20120426040445/http://m.thetimes-tribune.com/news/kids-for-cash-financier-powell-assigned-to-fla-prison-camp-1.1250164 |archive-date=April 26, 2012}}{{cite web |url=http://www.bop.gov/iloc2/InmateFinderServlet?Transaction=IDSearch&needingMoreList=false&IDType=IRN&IDNumber=15110-067&x=94&y=19 |archive-url=https://archive.today/20120722013148/http://www.bop.gov/iloc2/InmateFinderServlet?Transaction=IDSearch&needingMoreList=false&IDType=IRN&IDNumber=15110-067&x=94&y=19 |url-status=dead |archive-date=July 22, 2012 |title=Robert J. Powell |website=Federal Bureau of Prisons |access-date=July 8, 2012 }}{{cite news |url=http://citizensvoice.com/news/powell-released-from-florida-halfway-house-1.1474217 |title=Powell released from Florida halfway house |newspaper=The Citizen's Voice |date=April 16, 2013 |access-date=April 27, 2013 |url-status=dead |archive-url=https://web.archive.org/web/20140529123431/http://citizensvoice.com/news/powell-released-from-florida-halfway-house-1.1474217 |archive-date=May 29, 2014}} On August 10, 2015, a judge approved a $4.75M settlement agreement for Powell, for having paid kickbacks related to the adjudication of at least 2,400 juveniles.{{cite news |url=https://www.bostonglobe.com/news/nation/2015/08/12/judge-oks-settlement-kids-for-cash-center-owner/7ctcSjOuQY0B58ji48BAPI/story.html |title=Pennsylvania jail owner to pay youths $4.75m |date=August 13, 2015 |newspaper=The Boston Globe |access-date=September 14, 2018}}

Robert Mericle's sentencing in connection with his guilty plea for failing to report a felony was delayed pending his anticipated testimony in the bribery trial of former Congressman and Pennsylvania State Senator Raphael Musto. On November 23, 2010, a federal grand jury had issued a six-count indictment against Musto, charging him with accepting more than $28,000 from an unnamed company and individual in exchange for his help in obtaining grants and funding.{{Cite news |last=Morgan-Besecker |first=Terrie |title=Grand jury indicts Sen. Raphael Musto for allegedly accepting kickbacks |newspaper=Times Leader |date=November 23, 2010 |url=https://www.timesleader.com/archive/204815/stories-grand-jury-indicts-sen-raphael-musto-for-allegedly-accepting-kickbacks99917 |access-date=April 28, 2018}} Musto denied any wrongdoing.{{Cite news |last=Mocarsky |first=Steve |title=Musto denies any wrongdoing |date=November 23, 2010 |url=https://www.timesleader.com/archive/818503/musto-denies-any-wrongdoing |newspaper=Times Leader |access-date=April 28, 2018}}

After Musto died on April 24, 2014,{{cite web |url=http://www.legacy.com/obituaries/timesleader/obituary.aspx?n=senator-raphael-j-musto&pid=170795666 |title=Obituary: Senator Raphael J. Musto |newspaper=Times Leader |date=May 28, 2014 |access-date=May 28, 2014}} Mericle was sentenced the next day to one year in prison by Senior District Judge Edwin M. Kosik. Mericle was ordered to pay a $250,000 fine and to report to the Federal Bureau of Prisons on May 14, 2014.{{Cite press release |title=Robert Mericle Sentenced To One Year In Prison |date=April 25, 2014 |publisher=United States Department of Justice |url=https://www.justice.gov/usao-mdpa/pr/robert-mericle-sentenced-one-year-prison |access-date=2025-01-15}} He was released on May 29, 2015.{{cite web |url=https://www.bop.gov/inmateloc/ |title=Raphael J. Musto |website=Bureau of Prisons Inmate Locator}}

Acting under a rarely used power established in 1722 and reserved for extraordinary circumstances, known as "King's Bench jurisdiction",{{cite web |url=http://www.courts.state.pa.us/NR/rdonlyres/96F816DA-D829-4485-960E-642C92E866E5/0/8395AOPCChiefCounselTestifiesonKingsBenchAuthorityasSafetyValve.pdf |title=AOPC Chief Counsel Testifies on "King's Bench" Authority as an Important Safety Valve |date=August 3, 1995 |website=Administrative Office of Pennsylvania Courts |access-date=August 27, 2009 |url-status=dead |archive-url=https://web.archive.org/web/20110926230347/http://www.courts.state.pa.us/NR/rdonlyres/96F816DA-D829-4485-960E-642C92E866E5/0/8395AOPCChiefCounselTestifiesonKingsBenchAuthorityasSafetyValve.pdf |archive-date=September 26, 2011}} the Pennsylvania Supreme Court appointed Senior Judge Arthur Grim of the Berks County Court of Common Pleas as special master to review all juvenile cases handled by Ciavarella on February 11, 2009.{{cite news |url=https://www.timesleader.com/archive/818506/judge-picked-to-review-ciavarella-juvenile-cases |title=Judge picked to review Ciavarella juvenile cases |last=Morgan-Besecker |first=Terrie |date=February 12, 2009 |newspaper=Times Leader |access-date=August 27, 2009 }} He returned with his findings in an interim report dated March 11, 2009. He recommended that all adjudications handed down by Ciavarella from 2003 to 2008 be vacated, and that the affected juveniles' records be expunged. He concluded that due to Ciavarella's disregard for the juveniles' constitutional rights, as well as the kickbacks, no one who appeared before Ciavarella in that period had a truly impartial hearing.{{cite web |url=http://media.theweekender.com/documents/Grimm+initial+review.pdf |title=First Interim Report and Recommendations of the Special Master |last=Grim |first=Arthur |date=March 11, 2009 |website=Supreme Court of Pennsylvania |access-date=August 27, 2009}} {{dead link |date=November 2012}} On March 26, 2009, the Supreme Court approved Grim's recommendations and ruled that Ciavarella had violated the constitutional rights of thousands of juveniles, and initially hundreds of juvenile adjudications were ordered overturned.{{cite web |title=Court Tosses Convictions Of Corrupt Judge |date=March 26, 2009 |website=CBS News |url=https://www.cbsnews.com/news/court-tosses-convictions-of-corrupt-judge/ |access-date=May 2, 2009}}{{cite news |url=https://www.timesleader.com/archive/818507/juvenile-records-to-be-erased |title=Juvenile records to be erased |last=Learn-Andes |first=Jennifer |date=March 27, 2009 |newspaper=Times Leader|access-date=August 27, 2009 }}

A class action lawsuit was filed by the Juvenile Law Center on behalf of the juveniles who were adjudicated delinquent by Ciavarella despite not being represented by counsel or advised of their rights. Besides naming Ciavarella and Conahan, the suit seeks damages under the civil portion of the Racketeer Influenced and Corrupt Organizations Act (RICO) against the judges' spouses and business associates, shell companies, youth center officials, and Luzerne County.{{cite web |title=Juvenile Law Center Files Federal Class Action Complaint on Behalf of Affected Luzerne County Children and Families |url=http://jlc.org/news/25/luzernelawsuit/ |website=Juvenile Law Center |date=February 26, 2009 |access-date=August 26, 2009 |archive-url=https://web.archive.org/web/20090901204605/http://jlc.org/news/25/luzernelawsuit/ |archive-date=September 1, 2009 |url-status=dead }}{{cite web |url=http://jlc.org/news/27/luzerneamended/ |title=Juvenile Law Center Adds Luzerne County as a Defendant in Federal Class Action Lawsuit |date=April 27, 2009 |website=Juvenile Law Center |access-date=August 26, 2009 |archive-url=https://web.archive.org/web/20090901204539/http://jlc.org/news/27/luzerneamended/ |archive-date=September 1, 2009 |url-status=dead}} Three other federal lawsuits filed on behalf of the victims have been consolidated with the Juvenile Law Center lawsuit into a master class action.{{cite news |url=http://www.citizensvoice.com/news/attorneys_agree_to_a_consolidated_lawsuit_against_ciavarella_conahan?localLinksEnabled=false |title=Attorneys agree to a consolidated lawsuit against Ciavarella, Conahan |last=Sisak |first=Michael |date=June 11, 2009 |newspaper=The Citizen's Voice |access-date=September 6, 2009}} {{dead link |date=October 2010|bot=H3llBot}} An amended master complaint was filed on August 28, 2009.{{cite web |url=http://www.jlc.org/files/luzernecounty/Amended-Master-Complaint-August-27-09.pdf |title=Amended Master Complaint |date=August 27, 2009 |website=Juvenile Law Center |access-date=September 9, 2009 |url-status=dead |archive-url=https://web.archive.org/web/20100921101722/http://jlc.org/files/luzernecounty/Amended-Master-Complaint-August-27-09.pdf |archive-date=September 21, 2010}}

In June 2010, an injunction was filed on behalf of PA Child Care, Western PA Child Care, and Mid Atlantic Youth Services, the companies that provided treatment programs at the youth centers, to prevent the ordered destruction of thousands of juvenile records on the grounds the records are needed for the defense's case.{{cite news |url=https://www.timesleader.com/archive/200438/stories-juvie-papers27-destruction-blocked110819 |title=Juvie papers' destruction blocked |date=June 10, 2010 |newspaper=Times Leader |access-date=July 2, 2010 }}

On July 8, 2013, a three-judge panel of the Third Circuit Court of Appeals ruled in the case of Markel International Insurance Company v. Robert J. Powell, (his business partner) Gregory Zappala, et al., that the insurance company had no obligation to defend or indemnify the individuals or corporations involved, leaving the defendants liable for adverse judgments.{{cite web |url=http://www2.ca3.uscourts.gov/opinarch/122016np.pdf |title=Opinion of the Court Nos. 12-2016, 12-2132 |date=June 28, 2013 |website=United States Court of Appeals for the Third Circuit |access-date=August 1, 2013}}

The builder and the owner of the private detention centers, Robert Mericle,{{Cite web|url=https://www.prisonlegalnews.org/news/2023/feb/1/former-judges-pennsylvania-kids-cash-scandal-must-pay-206-million-damages/|title=Former Judges in Pennsylvania 'Kids for Cash' Scandal Must Pay $206 Million in Damages |website=www.prisonlegalnews.org}} settled for payments of about $25 million. On August 17, 2022, U.S. District Judge Christopher Conner issued a verdict requiring that Judges Ciavarella and Conahan pay $106 million in compensatory damages plus $100 million in punitive damages to nearly 300 class members, who were children sent illegally to secure facilities during the scandal, using a base rate of $1,000 per day of wrongful detention.{{cite news |last1=Rubinkam |first1=Michael |title=Two 'kids for cash' judges from Pennsylvania ordered to pay more than $200 million |url=https://www.inquirer.com/news/pennsylvania/kids-for-cash-pennsylvania-judges-lawsuit-20220817.html |access-date=August 18, 2022 |work=The Philadelphia Inquirer |publisher=Lenfest Foundation |date=August 18, 2022}}

In the aftermath of the federal charges and defendant pleas, the Pennsylvania General Assembly moved to create a commission to investigate the entire set of circumstances surrounding the miscarriage of justice in Luzerne County. Sponsored by Representative Todd Eachus of Butler Township in Luzerne County, House Bill 1648{{cite web |url=http://www.legis.state.pa.us/CFDOCS/Legis/PN/Public/btCheck.cfm?txtType=HTM&sessYr=2009&sessInd=0&billBody=H&billTyp=B&billNbr=1648&pn=2294 |title=House Bill No. 1648 |date=June 25, 2009 |website=The Pennsylvania General Assembly |access-date=August 26, 2009}} established the Interbranch Commission on Juvenile Justice in July 2009. The commission comprises 11 members, appointed from each branch of government in Pennsylvania, with four members chosen by the judiciary, four by the legislature and three by the governor.{{cite web |url=http://news.prnewswire.com/DisplayReleaseContent.aspx?ACCT=ind_focus.story&STORY=/www/story/08-07-2009/0005074011&EDATE= |title=Governor Rendell Signs Bill Creating Commission to Probe Juvenile Justice System |date=August 7, 2009 |website=Pennsylvania Office of the Governor |access-date=August 26, 2009 |archive-url=https://web.archive.org/web/20090902182032/http://news.prnewswire.com/DisplayReleaseContent.aspx?ACCT=ind_focus.story&STORY=%2Fwww%2Fstory%2F08-07-2009%2F0005074011&EDATE= |url-status=dead |archive-date=September 2, 2009}}

In signing the legislation on August 7, 2009, Governor Ed Rendell castigated Ciavarella and Conahan, saying they "violated the rights of as many as 6000 young people by denying them basic rights to counsel and handing down outrageously excessive sentences. The lives of these young people and their families were changed forever." Scheduled to meet a minimum of once per month, the commission was organized to investigate the actions of and damages caused by the two judges and review the state of the Luzerne County courts left in the wake of their tenures.{{cite news |url=http://citizensvoice.com/news/juvenile_justice_commission_s_first_meeting_set_for_next_week |title=Juvenile justice commission's first meeting set for next week |last=Swift |first=Robert |date=August 21, 2009 |newspaper=The Citizen's Voice |access-date=August 26, 2009 |url-status=dead |archive-url=https://web.archive.org/web/20090902065824/http://citizensvoice.com/news/juvenile_justice_commission_s_first_meeting_set_for_next_week |archive-date=September 2, 2009}}{{cite web |url=http://www.pahouse.com/PR/122081709.asp |title=Democratic leaders name nationally recognized expert to Interbranch Commission on Juvenile Justice |date=August 17, 2009 |website=Pennsylvania House Democratic Caucus |access-date=August 28, 2009 |archive-date=February 22, 2014 |archive-url=https://web.archive.org/web/20140222160226/http://www.pahouse.com/PR/122081709.asp |url-status=dead }} The commission was given power of subpoena and was required to complete its work and report its recommendations and findings to the three branches of state government by May 31, 2010.{{cite news |url=http://citizensvoice.com/news/rendell_to_sign_legislation_creating_corruption_commission |title=Rendell to sign legislation creating corruption commission |last=Swift |first=Robert |date=August 7, 2009 |newspaper=The Citizen's Voice |access-date=August 26, 2009 |url-status=dead |archive-url=https://web.archive.org/web/20090902065920/http://citizensvoice.com/news/rendell_to_sign_legislation_creating_corruption_commission |archive-date=September 2, 2009}}

The scandal was featured in Capitalism: A Love Story, the 2009 documentary by Michael Moore.{{cite web |url=http://www.filmbuffonline.com/FBOLNewsreel/wordpress/2011/02/18/judge-featured-in-moores-capitalism-a-love-story-found-guilty-of-racketeering/ |title=Judge Featured In Moore's 'Capitalism: A Love Story' Found Guilty Of Racketeering |last=Drees |first=Rich |date=February 18, 2011 |website=Film Buff Online |access-date=February 6, 2014}}{{cite web |url=https://vimeo.com/34656343 |title=The 'Kids for Cash' Scandal from 'Capitalism: A Love Story' |website=Vimeo |access-date=September 14, 2018}} A full-length documentary covering the scandal titled Kids for Cash was released in February 2014,{{cite web |url=https://www.imdb.com/title/tt2925642/ |title=Kids for Cash (2013) |work=IMDb |access-date=September 17, 2014}} and has been favorably reviewed.{{cite web |last=Rickey |first=Carrie |url=http://www.phillymag.com/ticket/2014/02/04/horror-movie-kids-cash/ |title=Movie Review: Kids for Cash |website=Phillymag.com |date=February 4, 2014 |access-date=May 1, 2014}}{{cite web |url=http://www.democracynow.org/2014/2/4/kids_for_cash_inside_one_of |title=Kids For Cash: Inside One of the Nation's Most Shocking Juvenile Justice Scandals |website=Democracy Now! |date=February 4, 2014 |access-date=May 1, 2014}} Pulitzer Prize-winning investigative journalist William Ecenbarger wrote a well-reviewed book-length exposition of the scandal.{{cite book |last1=Ecenbarger |first1=William |title=Kids for Cash: Two Judges, Thousands of Children, and a $2.8 Million Kickback Scheme |date=2012 |publisher=New Press |location=New York |isbn=9781595586841}} In April 2014, CNBC's crime documentary series American Greed reported on the case.{{cite news |url=http://citizensvoice.com/news/cnbc-s-american-greed-will-feature-kids-for-cash-scandal-1.1614363 |title=CNBC's 'American Greed' will feature kids-for-cash scandal |newspaper=The Citizen's Voice |date=January 10, 2014 |access-date=June 3, 2014}}

The scandal has inspired several fictional works. The Law & Order: Special Victims Unit episode "Crush", the CSI: NY episode "Crossroads",{{cite web |url=http://www.csifiles.com/content/2012/07/review-csi-new-york-crossroads/ |title=Review: CSI: New York — 'Crossroads' |last=Trongo |first=Rachel |date=2012 |website=CSI Files.com |access-date=September 14, 2018}} an episode of The Good Wife, and an episode of For the People{{cite web |url=https://www.imdb.com/title/tt9072100/?ref_=ttep_ep5|access-date=April 15, 2019|title=One Big Happy Family|website=IMDb }} feature corrupt judges sending children to private detention centers partly for financial gain. An episode of Cold Case called "Jurisprudence" is loosely based on this case. The episode of Leverage, titled "The Jailhouse Job" (2010) references this scandal, wherein a prisoner is sentenced to excessive time in a for-profit prison for a minor offense, but uses a young adult as the victim rather than a juvenile.{{cite news |url=http://pubrecord.org/nation/6340/ripped-headlines-greed-corruption/ |title=Ripped from the Headlines: Greed, Corruption, and Hate Crimes in Northeastern Pennsylvania |first=Walter |last=Brasch |newspaper=The Public Record |date=December 21, 2009 |access-date=November 16, 2012 |archive-date=October 12, 2013 |archive-url=https://web.archive.org/web/20131012075532/http://pubrecord.org/nation/6340/ripped-headlines-greed-corruption/ |url-status=dead }}{{cite news |url=https://www.timesleader.com/archive/818508/tv-show-mirrors-area-legal-headlines |title=TV show mirrors area legal headlines |newspaper=Times Leader |date=May 7, 2009 |access-date=November 16, 2012 }}{{cite web |first=Michael R. |last=Sisak |url=http://standardspeaker.com/news/county-judges-provide-tv-fodder-1.493436 |title=County judges provide TV fodder |newspaper=Standard-Speaker |date=December 17, 2009 |access-date=November 16, 2012}} In 2015, crime fiction novelist Ace Atkins, using the pen name of the late Robert B. Parker to write Kickback, which borrows heavily from this case, transposing it into a Boston suburb instead. An episode of Billions called "Quality of Life" has a subplot inspired by the scandal.{{cite web |first=Joshua |last=Alston |url=https://www.avclub.com/bobby-buries-one-of-his-own-in-a-solid-but-empty-billio-1798187374 |title=Bobby buries one of his own in a solid but empty Billions |website=The AV Club |date=March 28, 2016 |access-date=March 28, 2016}} The novel Corrupted by Lisa Scottoline includes the scandal.{{Cite book |last=Scottoline |first=Lisa |date=2015 |title=Corrupted: A Rosato and DiNuzio Novel |publisher=St. Martin's Press |isbn=9781250104618}}

{{Portal|Pennsylvania|Law}}

• Judicial corruption
• Prison-industrial complex
• Private prison
• PA Child Care
• School-to-prison pipeline
• Youth incarceration in the United States

{{Reflist}}

• [http://www.midatlanticyouth.com/index.shtml Mid Atlantic Youth Services official website]
• [https://web.archive.org/web/20100412100902/http://www.jlc.org/luzerne/ Luzerne County Update Center], Juvenile Law Center
• [http://www.pacourts.us/news-and-statistics/archived-resources/interbranch-commission-on-juvenile-justice Interbranch Commission on Juvenile Justice], archive of activities including final report

{{Luzerne County, Pennsylvania}}

Category:Political scandals in Pennsylvania

Category:Political corruption scandals in the United States

Category:Juvenile law

Category:History of Luzerne County, Pennsylvania

Category:Private prisons in the United States

Category:Crimes in Pennsylvania

Category:2008 scandals

Category:2008 in Pennsylvania

Category:Judicial misconduct

Category:Juvenile detention centers in the United States