State going after those who contributed to Harrisburg’s financial crisis

HARRISBURG, Pa. (WHTM) – The court appointed coordinator for the City of Harrisburg is soliciting law firms to pursue legal claims against former advisors to the city that may have played a role in creating the financial crisis.

The city plunged into a $300 million hole while Stephen Reed was mayor.

Reed, the city’s longest-serving mayor, was indicted last week on 499 criminal counts. Investigators say he spent millions of taxpayer dollars on historic artifacts and entered into a bad deal to fix the city’s trash incinerator.

Attorney Corky Goldstein says former Mayor Stephen Reed’s guilt or innocence may be determined in a courtroom, but it will not have much of an impact on the bottom line.

“That is not going to bring money back,” said Goldstein,” The civil lawsuit, which has less of a burden of proof, will bring money back to Harrisburg.”

Officials say others were involved and should pay the price.

Goldstein says more than one law firm may be chosen, and he says it’s important that the chosen firm has no ties to the parties involved in the city’s financial woes.

Harrisburg Council member Sandra Reid says going after those responsible will help the city’s recovery effort in more ways than one.

“You put Harrisburg on the brink of bankruptcy, someone must be held accountable,” said Reid. “I am thankful for Governor Wolf for recognizing that.”

Bids are due by July 31.

 

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