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Hershey Media Report 2/24/17
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Ex-Rendell top aide disbarred after guilty plea in FBI sting
Feb 24, 2017 | Philadelphia Inquirer
By Julie Shaw
One of former Gov. Ed Rendell's top aides, who pleaded guilty last May to one count of wire fraud after being caught up in an FBI sting, has agreed to be disbarred, the state Supreme Court's disciplinary board said Thursday. -
Former top Rendell aide disbarred after being caught in FBI sting
Feb 24, 2017 | Philadelphia Business Journal
By Jef Bulmenthal
Former Pennsylvania Gov. Ed Rendell’s chief of staff has been disbarred less than a year after admitting to pocketing FBI sting money. The Pennsylvania Disciplinary Board said John H. Estey, of Ardmore, had been disbarred on consent, effective March 25. -
Ex-Rendell aide John Estey disbarred before sentencing in campaign finance case, report: Friday Morning Coffee
Feb 24, 2017 | Pennsylvania Live
By John L. Micek
Good Friday Morning, Fellow Seekers. Former Rendell administration chief of staff John H. Estey has voluntarily given up his law license ahead of his April 11 sentencing in a campaign finance case. -
Ex-Rendell aide disbarred as sentencing looms
Feb 23, 2017 | Delaware County Daily Times
By Alex Rose
A former chief of staff to Gov. Ed Rendell who pleaded guilty to wire fraud in May after he was caught in an FBI corruption sting has been disbarred by the Pennsylvania Supreme Court. -
Estey Disbarred Ahead of Sentencing in Campaign Donations Case
Feb 23, 2017 | The Legal Intelligencer
By Gina Passarella
John Estey, an ex-chief of staff to former Gov. Ed Rendell and former Ballard Spahr partner who pleaded guilty last April over his alleged funneling of campaign donations, has been disbarred. The resignation statement for Estey, whose sentencing is scheduled for April 11, is under seal. But Estey's lawyer, James Eisenhower of Dilworth Paxson, said Estey consented to the disbarment and worked out a deal with the Disciplinary Board of the Supreme Court of Pennsylvania. -
How to select good board members for your not-for-profit
Feb 22, 2017 | The Tennessean (USA Today Network)
By Chad Milon
If you’re looking for proof that it’s critically important for not-for-profit organizations to have a strong, highly engaged board, look no further than the story of Hershey Company, the chocolate maker.
Traditional Media Coverage
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Ex-Rendell top aide disbarred after guilty plea in FBI sting
Feb 24, 2017 | Philadelphia Inquirer
By Julie Shaw
One of former Gov. Ed Rendell's top aides, who pleaded guilty last May to one count of wire fraud after being caught up in an FBI sting, has agreed to be disbarred, the state Supreme Court's disciplinary board said Thursday.
John H. Estey, 54, a lawyer from Ardmore, will be disbarred as of March 25, the board said.
Estey's attorney, Ronald H. Levine, said Thursday, "He voluntarily relinquished his license." Levine said he would have no further comment.
Estey pleaded guilty in federal court in Harrisburg on May 10 to one count of wire fraud committed in 2011, when he was snared in an investigation in which FBI agents posed as businessmen seeking influence with state legislators.
According to court filings, the FBI set up a phony business in 2009 to "investigate allegations of public corruption in Pennsylvania." The fake firm hired Estey and a top Harrisburg lobbying firm to help it obtain legislation to benefit its business, and made campaign contributions to further its goals.
Undercover agents gave Estey $20,000 that he promised he would pass along as campaign contributions in his name, circumventing state laws that ban corporate gifts and the use of lobbyists as "pass-throughs." Estey kept $13,000 of that money for himself, according to court records. Which lawmakers received shares of the $7,000 was unclear. Prosecutors did not disclose that in the plea documents.
The Inquirer has reported that Estey has been secretly cooperating with federal authorities, possibly for years, and wore a digital device to record his conversations for the agents as he traveled in the state's political, legal, and business circles.
Estey faces an April 11 sentencing hearing in Harrisburg. Although he could receive a maximum term of 20 years in prison under the law, guidelines call for a sentence of probation to six months, reflecting his cooperation and the relatively small amount of money involved.
In the late 1990s, Estey served as deputy chief of staff to then-Philadelphia Mayor Rendell. When Rendell became governor in 2003, Estey became his chief of staff.
Estey has also served as chairman of the Delaware River Port Authority, the Philadelphia Regional Port Authority, and the Independence Visitor Center. He was an executive at the Hershey Trust Co., but was fired last year after federal prosecutors made public their criminal case against him.
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Former top Rendell aide disbarred after being caught in FBI sting
Feb 24, 2017 | Philadelphia Business Journal
By Jef Bulmenthal
Former Pennsylvania Gov. Ed Rendell’s chief of staff has been disbarred less than a year after admitting to pocketing FBI sting money.
The Pennsylvania Disciplinary Board said John H. Estey, of Ardmore, had been disbarred on consent, effective March 25.
He pleaded guilty last May to one count of wire fraud for keeping $13,000 of the $20,000 that FBI agents posing as executives of a Florida-based textbook recycling company had given him in April 2011 to pass on to state lawmakers.
Estey, 54, who had been hired as a lobbyist by the federal agents using the phony Textbook Bio-Solutions LLC as a front, said he would distribute the money to three state lawmakers and a leadership caucus, but kept more than half of it for himself.
He will face a sentencing hearing on April 11 in Harrisburg. He could receive a maximum sentence of 20 years and a $250,000 fine, though he worked with the FBI for a period after being caught taking the sting money.
Estey’s case is thought to be related to Rob McCord’s, with the former Treasurer abruptly resigning from his executive position in January 2015 and pleading guilty to two charges of extortion.
McCord also worked with authorities after being nabbed, even wearing an FBI wire before entering his guilty plea.
Estey was seen as a star in Philadelphia legal circles. His father, John S. Estey, who died in 2015, was a corporate and bankruptcy lawyer at Montgomery McCracken Walker & Rhoads for more than three decades before retiring as managing partner in 1996.
The younger Estey followed in his father’s footsteps at Montgomery McCracken, before becoming a partner at Ballard Spahr. When Rendell was Philadelphia’s mayor, Estey served as deputy chief of staff from 1997 to 1999. When Rendell became governor, Estey was appointed chief of staff in 2003.
He returned in 2007 to Ballard Spahr, where he was co-chair of the government relations and regulatory affairs practice. He soon left to become a top executive at Hershey Trust Company – a job he was fired from last year when the case against him was made public.
Estey has also served as chairman of the Delaware River Port Authority, the Philadelphia Regional Port Authority, and the Independence Visitor Center.
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Feb 24, 2017 | Pennsylvania Live
By John L. Micek
Good Friday Morning, Fellow Seekers. Former Rendell administration chief of staff John H. Estey has voluntarily given up his law license ahead of his April 11 sentencing in a campaign finance case.
As The Legal Intelligencer reports, Estey, the former general counsel of the Hershey Trust and a partner in the Philly white-shoe law firm Ballard Spahr, worked out a deal for the disbarment with the Disciplinary Board of the state Supreme Court.
Estey's attorney, James Eisenhower (also best known as a repeat Democratic candidate for attorney general), confirmed the arrangement to the legal newspaper.
Estey pleaded guilty last May to charges that he scammed the FBI out of $13,000 in bribe money that was supposed to be spent on state lawmakers as part of a federal sting operation.
Instead, Estey only donated $7,000 of the $20,000 the FBI had given him and kept the rest for himself.
Estey had been reportedly cooperating with investigators ahead of his being charged last year, published reports indicated.
Estey served as Gov. Ed Rendell's top deputy from 2003 to 2007 before going back to Ballard to work as a lobbyist. He was one of the Democratic administration's chief budget architects and go-betweens during those years.
The rest of the day's news starts now.
Pennsylvania Turnpike Commission Chairman Sean Logan has stepped down to join the state Gaming Control Board. That's the political Law of Conservation of Matter at work, folks. Old pols are neither created nor destroyed. They just change form.
Just for good measure, Philly Mayor Jim Kenney says a state senator's tin-eared comments about poor kids and schools is 'racism,' The Inquirer reports.
This could only happen to the NHL. It's 9,000 degrees out. And the Stadium Series between the Flyers and Pens is coming to Heinz Field. The Post-Gazette has the details.
PhillyMag wonders, meanwhile, if 'baseball can be saved.' Raising the question, of course, of whether it was endangered to begin with.
BillyPenn runs down 11 essential works of Philly literature as Black History Month comes to a close.
Here's your #Harrisburg Instagram of the Day (Anyone remember winter edition):
NewsWorks/WHYY-FM goes inside the Philly group training hundreds to resist immigration raids.
A pipeline company has sued for access to four properties in Lebanon County, The Lebanon Daily News reports (via WITF-FM).
The Morning Call's Emily Opilo updates on the increasingly crowded field for the Allentown mayoralty.
Should people on food stamps be barred from buying junk food? Stateline.org takes up the perennial debate.
"How do you solve a problem like Ivanka?" Politico muses.
At CPAC, Steve Bannon and Reince Priebus have denied any reports of tension in the White House. Because, of course (Via Roll Call).
WolfWatch.
Pennsylvania's chief executive makes it easy for us this morning - no public schedule. These aren't the 'droids you're looking for. Move along ...Heavy Rotation.
We're setting the Wayback Machine to 1978 today for an absolute classic from the great Nick Lowe. Here's "I Love the Sound of Breaking Glass."Friday's Gratuitous Hockey Link.
Poor Claude Julien. The NHL great was behind the bench for his 1,000th game as Montreal's new coach on Thursday night, only to watch helplessly as Les Habitents turned in a listless performance against the New York Islanders. The Habs went down to a 3-0 defeat.And now you're up to date. See you all back here in a bit.
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Ex-Rendell aide disbarred as sentencing looms
Feb 23, 2017 | Delaware County Daily Times
By Alex Rose
A former chief of staff to Gov. Ed Rendell who pleaded guilty to wire fraud in May after he was caught in an FBI corruption sting has been disbarred by the Pennsylvania Supreme Court.
John Harper Estey, of Valley View Road in Ardmore, was disbarred on consent after submitting a verified statement of resignation, according to a release from the Supreme Court Disciplinary Board Thursday.
The resignation statement has been placed under seal and the disbarment will take effect March 25, according to the release.
Estey, 53, pleaded to one count of wire fraud May 10 before U.S. District Judge John E. Jones in the Middle District of Pennsylvania and is awaiting sentencing set for April 11, according to court documents.
Recognized as a powerful and influential Democrat in the state, Estey served as chief of staff with the Rendell administration from 2003 to 2007. He was also a partner and co-chair of the Government Relations and Regulatory Affairs Group for Ballard Spahr in Philadelphia and later served as an executive vice president at the Hershey Trust Co.
Federal prosecutors and the FBI set up a dummy company to investigate allegations of public corruption and approached Estey as early as 2009, according to court documents.
Estey represented the phony company between April and June of 2011, when he was accused us using a lobbying firm as a pass-through for $20,000 in campaign contributions to lawmakers.
Charging documents indicate Estey told agents that the recipients of the contributions would be receptive to helping the company and that he would hide the company’s role in distributing the donations. Estey only ended up distributing $7,000 and kept the remaining $13,000 for himself, according to court documents.
Corporate campaign donations are illegal in the state, as is tying campaign donations to promises by public officials to take any sort of official action. Prosecutors have not revealed anything more about the sting, including which lawmakers received the $7,000 or whether Estey assisted investigators with snagging any other potential targets.
Estey faces a maximum 20 years in prison and a $250,000 fine, but Assistant U.S. Attorney Michael Consiglio told Jones at the plea hearing that prosecutors would recommend a lighter sentence if Estey accepts responsibility.
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Estey Disbarred Ahead of Sentencing in Campaign Donations Case
Feb 23, 2017 | The Legal Intelligencer
By Gina Passarella
John Estey, an ex-chief of staff to former Gov. Ed Rendell and former Ballard Spahr partner who pleaded guilty last April over his alleged funneling of campaign donations, has been disbarred.
The resignation statement for Estey, whose sentencing is scheduled for April 11, is under seal. But Estey's lawyer, James Eisenhower of Dilworth Paxson, said Estey consented to the disbarment and worked out a deal with the Disciplinary Board of the Supreme Court of Pennsylvania.
"This was a voluntary relinquishment of John's license," Eisenhower said. "It was not adversarial at all."
Estey entered his guilty plea May 10, 2016, after he was charged via information in the Middle District of Pennsylvania with using a lobbying firm as a pass-through for campaign donations to state politicians. The charges were the result of an undercover FBI investigation into lobbying of the Pennsylvania legislature.
Estey worked in the Rendell administration from 2003 to 2007. Estey's scheme is alleged to have occurred from April to June 2011, while he was a partner and co-chair of the government affairs and regulatory group at Ballard Spahr in Philadelphia. He became general counsel of the Hershey Trust Co. in October of that year and has since left that position.
According to the criminal information filed April 29, Estey was charged with wire fraud relating to his acceptance of $20,000 in campaign contributions to secretly pay members of the General Assembly in order to influence legislation.
The money was given to him by a company operated by undercover federal agents posing as executives. The agents hired Estey to funnel the money to politicians who would push for legislation beneficial to the company, the information said. Estey allegedly forwarded $7,000 to members of the General Assembly, not identified in the information, and kept $13,000 for himself.
At the time the information against Estey was unsealed, another one of his defense lawyers, Ronald Levine of Post & Schell, said, "Mr. Estey is sorry for the mistakes he made. He has resolved the matter with the government and looks forward to moving on with his life."
The initial presentencing conference scheduled for the end of August was pushed back to Nov. 21. That was further delayed to Jan. 17 of this year, at which point the April 11 sentencing date was set, according to the docket in the case. U.S. District Judge John E. Jones III of the Middle District of Pennsylvania is presiding over the case.
A knowledgeable source said at the time Estey was charged that Estey had been cooperating, The Legal previously reported. Eisenhower said last year that in cooperation cases, the government can determine when it is ready to end that cooperation and move forward with sentencing. Eisenhower said in November that his client was prepared to go forward with sentencing that month if the government had chosen to do so.
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How to select good board members for your not-for-profit
Feb 22, 2017 | The Tennessean (USA Today Network)
By Chad Milon
If you’re looking for proof that it’s critically important for not-for-profit organizations to have a strong, highly engaged board, look no further than the story of Hershey Company, the chocolate maker.
The not-for-profit Hershey Trust Company holds a controlling interest in the Hershey Company, and its board became the focus of a widely publicized controversy over allegations of self-dealing and lax governance at a time when another company was pursing an ultimately unsuccessful attempt to buy the chocolate company. The board eventually agreed to a substantial reorganization under a settlement with the Pennsylvania Attorney General’s office.
Few not-for-profit boards control multibillion dollar investments like the Hershey Trust, but their oversight and actions are just as important to the success of their organizations. Selecting good candidates for board seats is a critical step in achieving good governance.
Goodwill Industries of Middle Tennessee is one of Middle Tennessee’s largest nonprofit organizations. With over $75 million in sales of goods donated by the community in 2015, Goodwill was responsible for the employment of approximately 15,400 jobs during that year, including external job placements and its own employees. Goodwill Industries of Middle Tennessee has long recognized that one key to thriving in our community is the development of a strong board to help provide the vision for the organization.
Fred McLaughlin, vice president of Robert Baird & Company and past chair of the board of directors of Goodwill Industries of Middle Tennessee, offers some thoughts about the qualities of a good board candidate.
Passion
“Passion for the mission of the organization is very important,” McLaughlin says. Passionate board members tend to be more engaged and more willing to take on the commitments involved with board membership. That passion can be evidenced by a candidate’s existing participation in the organization’s work.Understanding the vision
“Good board candidates will have a clear understanding of the organization’s vision, and how they can contribute to achieving it,” says McLaughlin.Experience
In searching for board candidates, McLaughlin says you should look for those with a background and skill set that match the organization’s needs. Those skills could include accounting, legal knowledge and experience in human resources.
Time
“Candidates need to have a clear understanding of the time commitment that board membership will involve and be willing to make that commitment,” says McLaughlin. For example, depending on the organization, in addition to attending monthly board meetings there may be committee meetings, fundraising and other tasks.McLaughlin also recommends that organizations have clearly defined roles for new board members and provide training and orientation for them.
Organizations seeking board members may also wish to know if candidates have strong ties to the community, enabling them to be influencers or bring in potential donors. Another strong trait for a board member is perspective. Good candidates can offer the organization a broad view about the community, the organization’s place within the community, and offer a good perspective on the role of a board in providing governance with integrity and effectiveness.
In thinking about the board’s membership as a whole, organizations should ask themselves whether the makeup of the board reflects the community in which the organization operates or the target audience within the community that the organization serves.
Finding and attracting board members with all these qualities can be a time-consuming and sometimes challenging process, but the payoff for a nonprofit — in terms of stability and success — makes it an extremely worthwhile investment.
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