Former Harrisburg Mayor Stephen Reed Pleads Guilty

Former Harrisburg, Pa., Mayor Stephen Reed pleaded guilty Monday to stealing city-purchased artifacts, according to published reports.

The Patriot-News of Harrisburg reported that Reed, mayor from 1982 to 2009, admitted to taking 20 historic artifacts, but said he had no criminal intent.

Judge Kevin Hess scheduled a sentencing hearing for Friday in the Dauphin County Court of Common Pleas in Harrisburg, Pennsylvania's 49,000-population capital.

Then Pennsylvania Attorney General Kathleen Kane in July 2015 announced the indictment of Reed. Prosecutors say he diverted municipal bond proceeds, notably related to an incinerator retrofit project, to a special projects fund he allegedly used to buy as many as 10,000 Wild West artifacts and other "curiosities" for himself — including a $6,500 vampire hunting kit. Harrisburg plunged toward receivership due to bond financing overruns related to an incinerator retrofit project.

Reed failed in his attempt to open a Wild West museum. Kane herself resigned after her conviction on nine unrelated criminal charges, including two felony perjury counts.

Harrisburg's City Council filed for Chapter 9 bankruptcy in October 2011 over the objection of then-Mayor Linda Thompson. A federal judge two months later negated the filing. A state-appointed receivership team crafted a recovery plan for the city that the Commonwealth Court of Pennsylvania approved in September 2013.

Mark Schwartz, the Bryn Mawr, Pa., attorney who represented the City Council in its bankruptcy filing and briefly counseled Schwartz briefly counseled Reed after his indictment, said the problem extends well beyond the mayor's office.

"[Reed] should never have been indicted over bond issuances approved by bond counsel, and [Kane] never came through against the professionals who profited on the Ponzi scheme. Welcome to Pennsylvania justice." said Schwartz.

"His plea as to the artifacts is probably best for all," Schwartz said of Reed.

Christopher Papst, author of the book "Capital Murder – An Investigative Reporter's Hunt for Answers in a Collapsing City," and a former Harrisburg reporter, also called for more accountability.

"Stephen Reed's guilty plea concerning his stealing of city artifacts is a good start for the people of Harrisburg who deserve answers and justice. But far more needs to be done and more people need to be held accountable for the city's financial collapse," said Papst, now an investigative reporter for WJLA-TV in Washington. "A strong message must be sent that any impropriety concerning municipal financial dealings will not be tolerated."

White-collar attorney and St. John's University professor Anthony Sabino said Reed's plea closes another chapter for "long suffering" Harrisburg residents.

"The city's recent financial difficulties subjected them to enough turmoil," said Sabino, a St. John's University professor. "Whatever sentence is eventually handed down, the main point is that the guilty plea ends a costly and embarrassing trial of a municipal leader, and removes any doubt as to the outcome."

Villanova School of Business David Fiorenza said despite Reed's successes in office, problems linger.

"[He] was unable to solve the problems of a high number of tax-exempt properties, the largely expensive civil war museum, incinerator project and the minor league [baseball] team expenses. His gains in economic development and gentrification will be overshadowed by the problems that existed after his tenure."

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