Hafer cites memory lapse in alleged lies to FBI
Former Pennsylvania Treasurer Barbara Hafer, who is accused of lying to the FBI, had "simple lapses in her memory" when she denied accepting $675,000 from a businessman who had made millions of dollars through dealings with her agency, her lawyer said Friday.
Former Pennsylvania Treasurer Barbara Hafer, who is accused of lying to the FBI, had "simple lapses in her memory" when she denied accepting $675,000 from a businessman who had made millions of dollars through dealings with her agency, her lawyer said Friday.
John A. Knorr said Hafer had forgotten about the money given to her 12 years ago, after she had left office.
He also said she was paid under a consulting contract that was reviewed at the time by lawyers and found to be "entirely appropriate."
In an indictment Thursday, prosecutors said Hafer, 72, treasurer from 1997 to 2004, lied when she told federal investigators in June that she had not received money from Richard W. Ireland.
In fact, the indictment said, Ireland paid her $500,000 in 2005 - almost three-quarters of all revenue for her consulting firm that year - and $175,000 in 2006 and 2007.
Ireland, 79, of East Fallowfield, Chester County, has become a millionaire as a middleman helping land government work for financial advisers. Hafer gave his clients lucrative contracts that have stayed in effect for years.
In a separate indictment Thursday, Ireland was charged with wire and mail fraud in connection with what prosecutors said was his scheme to bribe another treasurer, Rob McCord, between 2008 and 2016. Prosecutors said the bribes came in the form of campaign contributions, including many in which Ireland's role as the real donor was hidden.
In a statement, Knorr said it was "important to point out that the government's claims do not include any accusations whatsoever regarding Ms. Hafer's conduct as a public official."
That was a reference to the fact that her indictment does not link the payments to the work Hafer gave Ireland's clients.
Ethics experts said Friday that Pennsylvania law does not bar former state officials from accepting money from people who have done business with their agencies.
More narrowly, however, there is a "revolving-door" provision that bans former employees from lobbying their previous agencies for a year.
Hafer's contract with Ireland said she was being paid to advise him about opening a hotel in Gettysburg. Ireland has been in the hotel business in addition to his work in the financial sector.
Knorr noted that Hafer had spoken voluntarily with the FBI in the interview.
"She spoke freely and without declining to answer any of the questions," he said. "She was then, and continues to be now, fully cooperative and transparent."
In indicting Ireland, prosecutors said he had been trying to get work both with the Treasury Department and with the massive pension system for state employees, known as SERS. As treasurer, McCord served on the SERS board, they noted.
In response, SERS said Friday that neither Ireland nor any of his clients had received any work from the pension plan.
215-854-4821 @CraigRMcCoy