Head of LCB resigns in midst of privatization push

HARRISBURG - The chief executive officer of the Pennsylvania Liquor Control Board is resigning his $156,000 post, even as Gov. Corbett prepares to make his most aggressive move yet to privatize the wine and liquor stores it runs.

Joe Conti's letter of resignation was submitted Friday, according to a lawyer who is familiar with his decision and spoke on condition of anonymity. The lawyer said the LCB had agreed to let Conti return on a contractual basis temporarily to assist with the transition to a new chief executive.

Conti, a former Bucks County legislator, issued a statement late Friday saying it had been "a privilege" to work for the board and with its staff. "Simply put, I could not wait to come to work each and every day of the last six years. My service to the board has been my greatest source of career satisfaction."

His departure comes as Corbett prepares to roll out an aggressive plan to privatize the retail and wholesale operations at the LCB. Over the last two weeks, administration officials have been quietly meeting with business groups with a stake in the liquor market, outlining Corbett's vision for a system that would allows wine and beer to be sold in grocery stores, convenience stores, and big-box stores.

Conti's exit also comes as the state Ethics Commission continues its inquiry into allegations that he and two other top officials at the liquor board accepted gifts and favors in 2011 from vendors and other businesses with an interest in liquor regulation. But the lawyer who knew of Conti's resignation said it had nothing to do with that investigation or the underlying allegations. Conti, the lawyer said, had been preparing for several months to leave the agency.

The allegations that sparked the ethics probe were contained in a confidential report completed in March 2012 by the state Inspector General's Office and forwarded to Corbett administration officials.

The report, a copy of which was obtained by The Inquirer, described Conti, board member Patrick J. "P.J." Stapleton III, and marketing director James Short as having accepted gifts and favors in 2011, including wine and tickets to sports events and golf tournaments.

The report suggested Conti had lobbied a vendor and pressed others inside and outside the agency - including Philadelphia restaurateur Stephen Starr - for jobs for his brother and daughter. Conti was also described in the report as having often attended Phillies games as a guest of LCB vendors. Investigators reported finding no evidence that Conti or his family members paid for the tickets.

The report noted that the state Ethics Act barred officials from using their positions to gain benefits for themselves or their families - and that state liquor law made it a felony for LCB employees and their relatives to accept gifts from vendors. Penalties include firing and possible prosecution.

In October, Stapleton resigned his position on the board shortly before his term was to expire. Through his attorney, Henry E. Hockeimer Jr., Stapleton has said that he is cooperating with the Ethics Commission investigation and that he did not do anything wrong.