Charleroi will pursue funding from restitution in Ha case

Councilman Larry Celaschi said the borough was harmed by the failure to pay taxes on illegal aliens.

A Charleroi councilman thinks the borough should be given financial relief following a judgment against the owner of a staffing agency who failed to pay millions in employment taxes for illegal employees.

Councilman Larry Celaschi brought up the matter during Wednesday’s meeting, stating he feels the borough should seek financial relief from the Department of Justice following the sentencing of Andy Ha of Belle Vernon last month.

Ha, 28, was sentenced by U.S. District Judge Cathy Bissoon in Pittsburgh July 22 after pleading guilty in February of failure to pay taxes and harboring illegal aliens for financial gain.

He was the owner of Prosperity Services Inc., which provided workers to companies in the Charleroi area. He gave housing and transportation to at least 25 workers who were not permitted to live or work in the United States.

Ha provided the company’s tax return preparer with false spreadsheets that listed only the company’s employees who were authorized to work in the U.S. and were paid by check.

That spreadsheet, the government said, listed less than 10% of Prosperity’s total workers.

The company’s quarterly filings, the prosecution said, dramatically understated the amount of employment tax due each quarter.

The sentencing guidelines called for a prison term of 30 to 37 months incarceration and ordered Ha to pay $3.6 million for his convictions.

“In light of what happened with the Charleroi staffing agency owner being sentenced to prison and ordered to pay more than $3.6 million in restitution for harboring illegal aliens and failing to pay employment taxes, putting yet another black eye on Charleroi,” Celaschi said, adding that he spoke with borough Solicitor Steve Toprani and U.S. Sen. Dave McCormick about different options the borough could CHARLEROI •A2

“I think if we could demonstrate a loss, response, use of resources or community impact, generally courts have funded these types of settlements.”

STEVE TOPRANI

SOLICITOR pursue.

“I spoke with our solicitor to see if there is any way that we can capture some of that money from the Department of Justice, and after speaking to Sen. McCormick, he talked about introducing legislation to secure financial relief or special aid for our community from a portion of that money,” Celaschi said. “Charleroi was directly and significantly impacted by Mr. Ha’s actions and we believe that we can demonstrate harm in order to secure some of those funds.

“So, again, I was in the process of consulting with our borough solicitor to explore whether we have standing to file a claim, lien, civil suit or to recover a portion of that restitution.”

Toprani said he thinks the borough may have the ability to go after some of the money, but it would not be an easy or swift process.

“I think we may actually have some claims, that the justice department would review under strict scrutiny, as they do everything,” Toprani said. “But if we can demonstrate that there was borough response or impact to the borough we may be able to get in line if they process those relief funds for impact.”

Toprani said courts have granted permission to fund these types of settlements in the past.

“But keep in mind, it’s a process, I wouldn’t want to get too far ahead of ourselves,” Toprani said.

Councilman Jerry Jericho say it may be a lost cause.

“If the guy filed for bankruptcy, he doesn’t have any money,” Jericho said. “So for me, I think it’s a dead issue, because he doesn’t have anything.”

“I think if we could demonstrate a loss, response, use of resources or community impact, generally courts have funded these types of settlements,” Toprani said.

Councilman Paul Pivovarnik asked who would do the research or compile the information, and Celaschi said he had already started.

“I have already got a number ready to go for Charleroi,” Celaschi said. “From a police standpoint, from the fire department standpoint.”

“Is it all related to this incident, or just people in town?” Pivovarnik asked.

Toprani suggested the borough could also prove damages because of accidents or damages that could be proven to have been caused from breaking tax laws.

Pivovarnik asked if that would apply to the borough if Ha did not live in Charleroi and the company he provided employees to would have been in Speers or Fallowfield Township.

“Would it be a loss to the borough?” he asked. “Would it not be where the company was or where the employers were. They weren’t employed here, so if that’s the case it would be Speers or Fallowfield that would get the windfall of those missing wage taxes.”

Most of the illegal employees were housed in Bentleyville, but Toprani said the borough could ask its tax collector about a local wage tax to help Celaschi collect his information.

President Kristin Hopkins asked if he could provide all the information to council by next week’s voting meeting.

“Talk to our tax collector, or whatever else you are looking into and report back,” she said.

“I mean I have it right now,” Celaschi responded. “The ambulance company is involved, they have a pretty impressive report. I have been working with the fire department, we’ve already as a borough put on two fulltime firefighters.”

“But that is not pertaining to that incident,” Hopkins said.

“No, but you can leverage that okay, to show harm like (Toprani) just said,” Celaschi replied.

“Okay then, get it together, write it up, it’s your baby,” Hopkins said.