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Lansford seeks ways to recoup MEM money

Lansford Borough Council is taking steps to pursue officials of a disgraced Lackawanna County firm that duped it and other communities into taking out big loans to save money on street lighting.

The matter rose at a public meeting Wednesday, when council learned that the Cumberland County District Attorney's Office is investigating the firm, Municipal Energy Managers.On Monday, two principals of the firm, Robert J. Kearns and Patrick J. McLaine, were charged with felony counts of theft by failure to make required disposition of funds and criminal conspiracy, and misdemeanor charges of misapplication of entrusted property by Northampton County District Attorney John Morganelli. The charges stemmed from the firm's alleged bilking of some $832,460 from Bethlehem Township.Lansford solicitor Michael Greek, who also serves in that capacity for Coaldale and Tamaqua, both of which also were talked into signing a contract with MEM, said he's researching how best to go about pursuing charges against the firm.Lansford borrowed $306,100 under its contract with MEM, which promised thousands of dollars in savings over 20 years if the borough bought its street lights from PPL instead of leasing them under a deal brokered by MEM.The firm would then seek lower energy rates and upgrade and maintain the lights.MEM did nothing. Lansford is in the same boat as Coaldale, Tamaqua, Nesquehoning and Jim Thorpe, which also borrowed money under contract with MEM.Greek holds out little hope of recouping the losses."As soon as the money went out, it was probably gone," he said.According to a Northampton County grand jury investigation, Bethlehem Township paid MEM $832,460 on July 3, 2007. Less than four months later, it was gone, paid out by Kearns and McLaine to themselves.In Cumberland County, Hampden Township was also apparently taken in by MEM's promises.Chief Cumberland County Detective Les Freehling would say only that "we have had the allegations referred to our office and it is currently under investigation."