WILKES-BARRE — The federal investigation into thousands of gallons of fuel missing from this city’s pumps has expanded to include Wilkes-Barre City Employees FCU—already the focus of a separate fraud investigation—according to a city councilman here.
Councilman Tony George Friday said that city attorney Tim Henry received a letter earlier in the week from Luzerne County District Attorney Stephanie Salavantis in response to his inquiry a month ago about the status of the investigation.
The letter did not go into specifics, but did mention the Wilkes-Barre City Employees Federal Credit Union, George told the Times Leader. The district attorney indicated that the investigation was in the hands of the FBI, he added.
“The agents have advised that their work on the fuel investigation has crossed over into other investigations in the city of Wilkes-Barre which greatly expanded the scope of necessary work,” the letter stated. “You will recall the serious incidents that occurred surrounding the credit union investigation. Not only did that matter result in several arrests, but also the life of an employee was tragically lost.”
Jim Payne, former head of the credit union, committed suicide from a self-inflicted gunshot wound on March 10, one day before his scheduled testimony in front of a federal grand jury regarding a corruption investigation of the institution by the FBI and the Pennsylvania State Police.
This summer five CU members — including the CU's assistant manager — were indicted on fraud charges.
The five individuals were charged with conspiracy and bank fraud related to a scam to obtain loans with false collateral and stolen identities.
Tino Ninotti, 35; Jason Anthony, 34; Leo Glodzik, 43; Amanda Magda, 30 and Jeffrey Serafin, age 35, were charged in three separate indictments related to activities of the credit union. Magda was the assistant manager at the CU. Anthony is a Wilkes-Barre city police officer, while Ninotti is a former Wilkes-Barre city police officer. Glodzik is a contractor whose company had a towing contract with the city.
The district attorney’s office initiated its investigation into the missing fuel in July 2012 after the Times Leader reported that the city could not account for thousands of gallons of fuel missing from its storage tanks at the Department of Public Works yard on North Pennsylvania Avenue.
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