U.S. Attorney Peter Smith said in a statement Thursday that in May 2016, when federal agents interviewed Hafer as a part of an ongoing investigation, Hafer allegedly concealed her financial relationship with a business person, referred to in the indictment as “Person #1”, claiming that this person did not help with her consulting business.
Advertisement
Hafer was charged Wednesday with lying to federal agents about a series of monthly payments to her consulting firm equaling more than $500,000.
The businessman shared in fees charged by private asset managers contracted by the Treasury Department while Hafer was in office.
McCord of Lower Merion, Montgomery County, pleaded guilty previous year to threatening donors to give money to his gubernatorial campaign. The secret campaign contributions were made during McCord’s two campaigns for Pennsylvania Treasurer and in his unsuccessful 2014 bid for Governor of Pennsylvania. She is charged with two counts of making false statements or representations to a federal agency. That person facilitated the payment of more than $600,000 to Hafer’s consulting firm, Hafer & Associates, after she left the treasurer’s office, investigators claim.
Barbara Hafer appears at a rally in the State Capitol Rotunda in Harrisburg on September 4, 2002 after endorsing Democrat Edward Rendell for governor of Pennsylvania.
Hafer’s attorney, John Knorr, couldn’t immediately be reached for comment about the case.
Investigators interviewed Hafer as part of an investigation into alleged “pay-to-play” activities involving the Pennsylvania government. “Although Hafer allegedly claimed that this business person did not help her consulting business, the investigation revealed that the money allegedly accounted for approximately 73% of the funds Hafer & Associates earned in 2005”.
Hafer & Associates and a company associated with Person #1. That agreement called for Hafer’s firm to support that company’s effort in a hotel development near Gettysburg College in return for payment of $500,000. That agreement did not require Hafer & Associates to achieve any particular result, according to authorities.
Advertisement
Smith’s office said the maximum penalty under federal law is five years of imprisonment on each of the two counts. The businessman was not identified in the Hafer indictment. Investigators claim that same firm paid at least $175,000 more to Hafer’s business in 2006 and 2007.
