Friday, October 18, 2013

Firms tied to kids-for-cash settle lawsuit

The companies that owned and operated the two detention centers at the heart of the Luzerne County kids-for-cash judicial scandal have agreed to settle a civil lawsuit for $2.5 million.

PA Child Care, Western PA Child Care and Mid-Atlantic Youth Services Corp. - companies once co-owned by local attorney Robert Powell - agreed to settle claims brought by thousands of juveniles who appeared in front of disgraced former Luzerne County Judge Mark A. Ciavarella Jr.

"Despite the parties' strong belief in their respective positions, the parties recognize there are substantial uncertainties and significant litigation costs with respect to the action and their potential outcomes if they were taken to trial," the plaintiffs and defendants wrote in a joint motion.

Ciavarella and former Luzerne County Judge Michael Conahan are serving lengthy prison terms in connection with the scandal, which led to juveniles being locked away in the facilities, often for minor offenses.

They are accused of taking $770,000 in kickbacks from Powell and failing to properly report $2.1 million in "finder's fees" paid by Robert Mericle, the man whose construction company built the detention centers in Pittston Township and Butler County.  (more...)

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