Former Allentown Finance Director Admits To Rigging City Contract Award

PHILADELPHIA – Garret Strathearn, 68, of Sea Girt, NJ, pleaded guilty today to conspiracy to commit mail and wire fraud while serving as the Finance Director for the City of Allentown, PA. 

Strathearn admitted that he personally and directly interfered with the awarding of a city contract, at the behest of Public Official #3 who was receiving campaign contributions from the eventual contract awardee.  Strathearn and Assistant City Solicitor Dale Wiles, who previously pleaded guilty, corruptly manipulated the process for awarding the City of Allentown’s 2014 revenue collection contract with the approval of, and for the benefit of, Public Official #3.  Strathearn and Wiles both falsified certain paperwork in order to create public records which gave the false impression that the contract awardee had earned the revenue collection contract on the merits. Strathearn and Wiles also made statements to FBI agents which were materially false with respect to the revenue collection contract award process for 2014.

After accepting the guilty plea, United States District Judge Juan R. Sanchez scheduled a sentencing hearing for April 14, 2016.  Wiles in scheduled to be sentenced on March 2, 2016.  Strathearn and Wiles each face a maximum possible sentence of 20 years in prison, a fine, three years of supervised release, and a $100 special assessment. 

This case is being investigated by the Federal Bureau of Investigation, the Internal Revenue Service Criminal Investigations, and the Pennsylvania State Police.  It is being prosecuted by Assistant United States Attorneys Joe Khan and Nancy Beam Winter.