Opinion

In Re: Special Prosecutor, Thirty-Fifth Statewide Investigating Grand Jury

Court: Supreme Court of Pennsylvania
Filed: Aug 26, 2015
Status: Published
On the bench: per curiam
Cited by: 0 cases
Authority: More cited than 35.0%

The opinion

IN THE SUPREME COURT OF PENNSYLVANIA

MIDDLE DISTRICT

IN RE: SPECIAL PROSECUTOR, : No. 1 MM 2015

THIRTY-FIFTH STATEWIDE :

INVESTIGATING GRAND JURY :

ORDER

PER CURIAM

AND NOW, this 26th day of August, 2015, upon the request of the supervising

judge for removal of the seal from all matters involving the 35th Statewide Investigating

Grand Jury and the investigation of Attorney General Kathleen Kane which have been

lodged in this Court, save for grand jury materials such as testimony, exhibits, and in

camera proceedings, and based on the supervising judge’s assurance that there are no

present grand jury secrecy concerns relative to such unsealing, it is hereby ORDERED

that the seal is lifted upon such terms.

Filed in Supreme Court

I" (23 2014

Middle

UNSEALED PER

ORDER OF THE

COURT DATED

IN THE SUPREME COURT OF PENNSYLVANIA

AUGUST 26, 2015

IN RE: : `UPREME COURT No.

: GRANDIURY DOCKETS:

SUPREME COURT OF PA

SPECIAL'PROSECUTOR, No. 176 MD 2012

THIRTY-FIFTH STATEWIDE : MONTGOMERY CO.COURT

INVESTIGATING GRAND JURY : No. 2644 MD 2012

EMERGENCY APPLICATION FOR EXTRAORDINARY RELIEF

ANDNOW,this 6th day ofJanuary 2015,comes David Peifer, by counsel,

Christopher P. Caputo, Esq., and presents the following:

JURISIACTLON

1. The Supreme Court of Pennsylvania has jurisdiction pussuant to the

JOicjary Article of the'Copstitution of:the Commonwealth of Pennsylvania, Article

(jurisd.iction,of the Supreme (ourt); Article 5 Section 10 (supervisory

authority of the Supreme Court); and the first clause of Section 1 of the Scheduleto

the-JuicialY Arficle (PoWer and jurisdiction Of'the Stipreme Court); and further

Received in Supreme Court

JAN 6 2015

Middle

pursuant to the Judicial Code, 42 Pa.C.S.A. §721(3)(original jurisdiction of the

Supreme Court in quo warranto); and §726 (extraordinary jurisdiction of the

Supreme Court); as implemented by Pa.'R.A.P. 3307(pleadings in original actions)

and 3309(King's Bench matters).

APPLICANT

2. The Applicant is David Peifer S.Pecial Agent in Charge, Bureau of Special

Investigations, an employee of the Pennsylvania Office of Aftorney General

(OAG). Special Agent Peifer among other duties, supervises all Special

Investigations conducted by OAG; Special Agent Peifer has offices in Harrisburg,

Norritown,. and resides in Delaware County,:PA.

• .3. On January 6,'2015 undersigned coupsel accepted service of a subpoena on

behalf'of Special Agent Peifer: by an agent of Special 'Prosecutor Thomas E.

Carluccio to appear and testify on January 12, 2015 before the Thirty-Fifth

Statewide- Investi2atine Grand jury sitting in Montgomery County.

• 4.- The Applicant; by- virtue ofhaving,been.served with-a subpoenato-appear

and testify, has standing to cballenge the egality of the office of Special Prosecutor

appointedlo-the Thirty-Fifth Statewide Investigating Grand jury. Gwinn v. Kane, 19

Pa,CmwItfi.. 243, 339 A.2d -83$,$40-843 1975), disposition affirmed, 465 Pa. 269,

348 A.2 900(Pa. 1975).

FACTUAL BACKROUND

5. On June 6, 2014 an article appeared in the .Philadelphia Daily News

concerning a 2009 grand jury irvestigatioì.ofJ. Whyatt Mondesire,a forrner head of

theNAACP in Philadelphia„ and .Harriet Garrett, one ofMr. Mondesire's employees.

Exhibit A.

6. The 2009 statewide investigdting - grand jury had been convened and

impaneled in Montgomery County.

The.Philadelphia.Daily News article cited two documentary sources: First,

a 2009 memo wrMen by-then-Deputy Aqorney.General William Davis, Jr., addressed

to thenchiefDeputy Attorney Generaj,FrankFipa artd-thep-Senior..Deputy Attorney

General'E. Marc Costanzo; and Second a 2914 transcript of a taped interview, by

David peifer, Director of the OAG Bureau- of Special Investigations, of Michael

Miletto,the OAG special agent who had earlier investieated Mr. Mondesire and Ms.

Garrett.,Exhibit A.

8. Sometime .prior to the June 6, 2014 Philadelphia Daily News article, a

Special.Prosecutor(Thomas E. Carluccio, Esq., an attorney in private practice) was

appointed and authorized to utilize the hirty-Fifth Statewide Investigating Grand

J ry to,investigate the alleged "leak" of alleged "grand jury material" by employees

of the OAG,or other persons, to the. Philadelphia.Daily News.

9. The written communications, applications, petitions, orders, notice of

submission, and all other documents Oderlying the appointment of the Special

Prosecutor and submission of this invest, gation to the grand jury are under seal. It

has been publicly reported that the app6intment of the Special Prosecutor in this

matter was authorized by the Supreme Court and by, Order of Supervising Judge of

the Grand Jury William R. Carpenter. Exhibits .B, C, and D.

:BASIS FOR EXTRAORDINARY RELIEF.

10. The Investigating Grand Jury ct 42 Pa.C.S.A. §§4541 et seq., does not

provide for appointment of any special prosecutor.

11. The Commonwealth Attorneys Act, 71 P.S. §§732-101 et seq., does not

provide for the appointment of any special prosecutor.

12. The sole provisions in Pennsylvania law for appointment of a special

prosecutor apply only in the event that an elected county District Attorney has been

charged with crime or wilful and gross negligence in office. County Code, 16 P.S.

§§1405-1406. See similar provisions at 16 P.S. §7710 concerning counties of the

first class; and.16 P.S. §§4405-4406 conierning counties of the second class.

13. Pa.R.A.P. 3331 provides for review by the Supreme Court of"An order

relating to the supersession ofa district attorney by an Attorney General or by a.court,

or to the appointment, supervision, administration or operation of a special

prosecutor." This rule does not create any independent substantive authority for the

appointment of any special prosecutor, and must therefore be construed to apply

solely to cases arisine, under the above-cited provisions of the County Code.

14. The consideration of a special prosecutor in Dauphin County Grand Jury

Investigation Proceedings(N . 3), 322 Pa. 358,2 A.2d 809(1938), was held to have

been authorized by a 1929 Legislative en ctment which was repealed upon passage

of the Comrnonwealth Attorneys Act, sirpra, in 1980. Former section 907 of the

Administrative Code of 1929,71 P.S. §297,authorized President judges ofthe Courts

ofCommon Pleas to request in writing tha the Attorney General intervene in criminal

matters and supersede the local DiStrict Attorney. See statutory history:

Commonwealth v. Harris, 501 Pa. 178, 460 A.2d 747, 751, fn. I (1983). Thus,

reliance upon the 1938 case by the Lackawanna County Court in In re: County

Investigating Grand Jurv V.111, 2003, 200,5 WL 3985351 (Pa.Corn.P1. 2005) for the

general proposition that Pennsylvania cotirts have traditional or inherent authority to

appoint special prosecutors, was misplaced. See section 11(C)ofthat Opinion,p.9-10,

titled "Appointment of Special Prosecutor."

15. Another Lackawanna County grand jury later gave rise to a proceeding on

the issue of whether the Pennsylvania Shield Law,42 Pa.C.S.A. §5942, protects a

newspaper reporter from compelled disclosure ofthe source of a grand jury leak. In

Castellani v. The Scranton Times, 956 A.2d 937 (Pa. 2008), the Supreme Court,

while addressing the Shield Law, mentiot ed in passing that the Supervising Judge of

the Grand Jury had appointed a Special Prosecutor to investigate a leak, but as the

validity of the appointment was not at issue, no authority for the appointment was

cited.

16. In In Re Dauphin County Fourth Investigating Grand Jury,947 A.2d 712

(Pa. 2008), grand jury leaks had been 'complained of by individuals subject to

investigation. The Supreme Court issued a per curium Order under the King's Bench

authority of42 Pa.C.S.A. §726,directing he Supervising Judge ofthe Grand Jury "to

consider whether a special prosecutOr should be appointed to pursue the

allegations..." No authority in support ofthe contemplated appointment of a special

prosecutor was cited. Id., 712. Subsequently, a special prosecutor was appointed,

although, again, the later full Opinion by the Supreme Court does not cite any

authority relied 'upon for the appointment. ln Re Dauphin County Fourth

Investigating Grand Jury. 19 A.3d 491 (Pp. 2011).

17. In disapproving the appointment of a special prosecutor by the

Philadelphia Court of Common Pleas, to stupersede the local District Attorney in the

conduct ofa grand jury investigation, outisde the terms of71 P.S. §297,the Supreme

Court of Pen.nsylvania expressly held that Pennsylvania courts had no such extra-

statutory authority, and "there is no public office in Pennsylvania known as Special

Prosecutor." Smith v. Gallagher, et al, 408 Pa. 551, 185 A.2d 135,149(1962). The

Supreme Court in Smith pointedly disapproved the proposition that Pennsylvania

courts have in.herent independent power io appoint special prosecutors, as follows:

[T]he intervening appellants Say that Judge Alessandroni did have

the jurisdiction and the authoritylto order a special grand juiy and

appoint a special prosecutor. Theqral and written arguments submitted

i.n behalf of this thesis, however, luack conviction or even persuasion.

They speak vaguely ofinherent auttlority, common lawjurisdiction and

traditional powers.

Id., 146; and at length further at 151-154.

18. Although Smith v. Gallagher was decided by the Supreme Court in 1962,

nothing in either the Investigatima Grand Jury Act or the Commonwealth Attomeys

Act, both adopted in 1980, has corrected the lack of authority to appoint special

prosecutors vigorously pointed out by Justice Musmanno in 1962. Mere lapse oftime

has not provided new constitutional or statutory authority. Indeed,since repeal of71

P.S. §297 by the Commonwealth Attormys Act in 1980, 71 P.S. §732-502, no case

has been found at any level of the Pennsylvania judiciary which has cited any

constitutional or statutory authority for the appointment of a special prosecutor.

19. There was no necessity for the appointment ofa special prosecutor in this

rnatter, since, according to publicly knom facts, several county District Attorneys

had jurisdiction to both investigate any "1,eak" by the OAG and prosecute anycrime

found to have been committed. Such couhty District Attorneys appear to i.nclude,at

a minimum,those serv.ing Montgomery C6unty(site ofthe2009 grand jury),Dauphin

County (site of the principal office of A torney General Kane and nurnerous other

OAG officers and employees), and Philadelphia County (site of the Philadelphia

Daily News). Reinforcing the avai.lability of at least those three counties, the

Investigating Grand Jury Act by its own terms expresses a preference for county

arand juries over multi.-county grand juries, unless "the investigation cannot be

adequately performed by an investieating; arand jury under section 4543 (relating to

convening county investigating grand jury). 42 Pa.C.S.A. §4544.

20. The argument that the appointment of a special prosecutor was'necessary

since the Office of Attorney General 'would have had a conflict of interest in

investigating itse.lf does not answer eithiCr: (I) the complete absence of statutory

authority for such an appointment; or(2)the availability ofseveral alternative county

District Attorneys to whom the investigation could have been referred.

21. The appointment of Special .Prosecutor Thornas E. Carluccio, and the

proceedings of the Thirty:Fifth Statewide Investigating Grand Jury related to any

matter submitted or actions taken by the Special Prosecutor, were and continue to be

without legal authority, and null and void'ab initio.

WHEREFORE,it is requested that the Supreme Court vacate the original Order

appointing a Special Prosecutor in thi , matter under the applicable Notice of

Submission or otherwise. It is further requested that the Supreme Court prohibit

enforcement ofall subpoenas issued by the Special Prosecutor under the authority of

the Supervisina Judge of the Grand Jury;'and further prohibit issuance of any report

or presentment by the Thirty-Fifth Statekvide Investigating Grand Jury based on any

inatter submitted to the grand jury by the Special Prosecutor.

Respectfully submitted,

e/o."0-e76p,M

Christopher P.Caputo, Esquire

Caputo &'Mariotti, P.C.

730 Main Street.

Moosic,PA -18507

Telephone: 570 342-9999

FAX: 570 457-1533

.Ernai I:cpcaputo@caputornariotti.com

.PA Suprerne Court ID 73446

Attorneyfor David Peifer

STATEWIDE INVESTIGATING GRAND JURY

SUBPOENA

TO: David C. Peifer :SUPREME COURT OF PENNSYLVANIA

:NO.[176 M.D. MISC. DKT.2012

:MONTGOMERY COUNTY COMMON PLEAS

2644-2012

1. YOU are ORDERED to appear as a witness before the PENNSY1VANJA STATEWIDE

INVESTIGATING GRAND JURY, 1000 Madilon Avenue (corner of Trooper and Van Buren

Roads), Third Floor, Norristown, Pennsylvania on Monday, January 12, 2015 through Friday,

January 16, 2015, at 8:00 O'clock A.M. to testify:and give evidence regarding alleged violations of

the laws of the Commonwealth of Pennsylvania and to rem* until excused.

Please report on Monday, January 12, 2015 1:00•NYI

2. YOU are further ORDERED:

FAILURE to attend may cause a warrant to be issued for your arrest and will make you liable

under penalty of law for contempt of Court.

DATED: December 3, 2014 fa.4.&;z07 A? ea/I/sae/de?

lion. William R. Carpenter

Supervising Judge

If you have any questions about your appearance, contact Special Prosecutor Thomas

Carluccio, at 484.674.2899.

Notice: 123 Subpoena: 1624

IN THE COURT OF COMMON PLEAS

MONTGOMERY COUNTY,PENNSYLVANIA

IN RE: : SVPREME COURT OF PENNSYLVANIA

: NO.176 M.D. MISC.DKT.2012

THE THIRTY-FIFTH STATEWIDE

: MONTGOMERY COUNTY COMMON PLEAS

INVESTIGATING GRAND JURY : 2644-2012

NOTICE OF RIGHT OF COUNSEL

1. The Thirty-Fifth Statewide InVegigatino Grand Jury is conducting an investigation

into possible violations of Pennsylvania Criminal Laws.

2. As a witness subpoenaed to appear, testify, and/or to produce documents, records

or other evidence before the investigating grand jury, you are entitled to the

assistance of counsel before, during and after your appearance before the investi-

gating grand jury, including assistance duting the time when appearing before the

grand jury.

3. If you desire the assistance of counsel and cannot afford an attorney, counsel will

be appointed by the Supervising Judge for you.

4. If you wish. to consult with an attorney before your appearanée before the

investigating grahd jury or if yOu wish to have an attorney with you during your

appearance before the investiOting gind jury, or both, and you are able to afford

your own attorney, you should make ar:rangements with that attorney as soon as

possible so as not to delay your scheiduled appearance before the investigating

grand jury. If you are unable to afford ypur own attorney, but wish the Supervising

Judge to aPpoint an attorney with whorn you may consult and who can accompany

you during your appearance before the )nyestigating grand jury, please contact the

deputy attOrney general listed on the bottOm Of yodr*subpoena who will contact the

Supervising Judge for the purpose of obtaining appointed counsel for you.

5. If you have any questions concerning the above or otherwise about your

appearance, please contact the deputy attomey general listed on the bottom of your

subpoena.

COMMONWEALTH OF PENNSYLVANIA

Statewide Iffilesti§atliii Grand Jury

MEMORANDUM

SUBJECT: Hotel/Transportation Arrangements

TO: Grand Jury Witness

FROM: Executive Secretary for the

Grand jury •

You have been subpoenaed to appcar in Norristown to testify before the Statewide Investigating

Grand Jury. If you are in need of hotel accorripodations the evening before testimony, or bus

transportation arrangements, you must contact the Deputy Attorney General listed at the bottom of your

subpoena immediately. Air travel within the Utmidonwealth is ordinarily not permitted, unless

authorized by the Deputy Attorney General. If yoU are in need of train tickets you must purchase your

own coach class tickets and attach both incorning/outkoing stubs to your expense sheet for reimbursement.

If you make any travel or hotel arrangements on'your own,please be advised that you will only be

reimbursed for authorized expense§ at the Comdonwealth rate.

With regard to hotel lodging, •the Componwealth will pay for only your room rate

(Commonwealth's rate). All incidentals such as movies or telephone calls are at your expense and are not

reimbursable on your cxpense sheet. Parking charges and rbom service charges are not included in the

room payment made by the Office of Attorney Generl. You• will need to obtain receipts and attach to the

expense sheet given to you upon arrival at Grand Jury for those charges to be reimburSed (minus any

gratuities). Prior to arriving'at the Grand Jury on the morning you are scheduled to testify you must check

out of your hotel room and pay for any extra chaiges.

Once you arrive in the lobby of 1000 Madison Avenue,proceed to the grandjury reception area on

the third floor or wait and a law enforcement officer from the Office ofAttorney General will meet you in

the lobby. SUBPOENAED WITNESSES ONLYLNO GUESTS ARE PERMITTED ON THE

PROPERTY—THEY WILL BE ASKED TO LE4VE! THIS INCLUDES THE PARKING LOT!

Please folloW the law enforcement officer's instructions as to those allowed access fo the grand jury floor.

Upon entering the Grand Jury suite you will be instrucited by the secretary at the desk to sign in and will be

given an expense sheet You will also be given a stick'fr to wear that identifies you as a visitor. Place the

sticker on your clOthing, either on your right.or 1,shoulder. In order for you to obtain full

reimbursement, the following receipts will be flitted: Parking, turnpike tolls, and/oi taxi fare

(gratuities will not be reimbursed). If you made your own tEavel or hotel arrangements in order to

be reitnbursed you must supply a receipt indicatitng..a zero balanc.e ts dt!e and shows method of

paytnent. Again, you will only be reimbursed at the ComtnonWeilth!s t'ate.

SPECIAL NOTE: COMMONWEALTH OFPA EMpLOYEESAPPEARING BEFORE THE GRAND

JURY IN THE COURSE OF THEIR EMPLOYMENT ARE TO MAKE THEIR TRAVEL AND

HOTEL ARIUNGEMENTS AND SEEK REIMBURSEMENT THROUGH THEIR OWN STATE

AGENCY, UNLESS OTHER ARRANGEMENTS ARE MADE HITE THE DEPUTY ATTORNEY

GENERAL WHOSE NAMEAPPEARS AT THEBOTTOM OF YOUR SUBPOENA.

PLEASE NOTE: NO SMOKING PERMITTED!

EXH BIT A

1/6/2015 State AG.probed PhiIly NAACP leader Mondesire's finances 5 years ago - Philly.can

philly0com Subscriber Services hJuuirrrl eggifts

Home I News I Sports I Entertainment Business I Food I Lifestyle Health j Mdrketplace

Collections

State A.G. probed Philly NAACP

leader Mondesire's finances15 years

ago

BY CHRIS BRENNAN, Daily News Staff Vritor

brennacephillynews.com, 215-854-5973

POSTED; Juno 00 2014

STATE ATTORNEY General Kathleen Kane is ieviewing a 2009

grand-jury investigation of J. Whyatt Mondesirelformer head of the

NAACP in Philadelphia, and one of his employees, according to

documents obtained by the Daily News.

Mondesire's employee, Harriet Garrett, and her aughter pleaded guilty

t's Ike a p ayground for grown-ups.

in 2010 to stealing nearly 5220,000 in state gra ,i.money for a job- ,13001C YOUR WINTER .etac,..k.natel

training program. Garrett was sentenced to a mirmum of six months GETAWAY NOW1 v- a GrOC.,b

in jail and ordered to pay restitution. Her daughter got 18 months'

probation.

Do You Have These? ei

A 2009 memo written by then-Deputy Attorney general William Davis

faggot, Cortxtorn

Jr. says investigators 'uncovered what appeared to be questionable Craving*

spending" of state money by Mondesire. Gloating

ttcltyl

It's like a Kane. a Democrat. is now trying to deterrnine what happened with the

Mondesire investigation. Gov. Corbett, a Republ can, was the attomey

Burning Ero

playground for general at the time.

Mandesire, 64, says he was never questioned apci denies any financial

Lack of

Motivation

grown-ups. wrongdoing.

Stolkog

Orlo Constitution

or Otantionj

The 2009 Davis memo (retailed for his bosses what had been Belly Skin

uncovered about Mondesire and Garrett, who wcirfked at the onO FLuturk

Philadelphia Sunday Sun, a weekly newspaper Mondesire publishes.

Learn More»

A nonprofit called Next Generation Cornmunity development Corp.,

which is operated by Mondesire, held a state-g4emrnent grant for a

jobs-training program in 2004 and 2005. but handed it off to Garrett, Ve.Rccouzrncnd

who ran another nonprofit called Creative Urban Education Systems,

or CUES, accordinsto the Davis memo. The Rev. Carl Fitchett to lead Philly

NAACP

Mondesire was listed as chairman of the CUES loarz1, the memo

noted, while Garrett served as the treasurer for Next Generation's Apri 111, 2014

board.

Questions over Philly NAACP finances

Davis wrote his memo to then-Chief Deputy Attorney General Frartk January 24, 20r4

Fine and then-Senior Deputy Attorney General d Marc Costanzo.

Board members from NAACP leader's

Corbett. as attorney general, narned Fina fn 2006 to head a rtew public-

nonprofit sue to see the books

corruption unit and Costanzo to work on cases fOr the unit in the

Jonoø, 2014

Philadelphia region.

Fine and Costanzo nowwork in a similar unit torDistrici Attomey Seth Mondesire's friends-turned-foes get

access to his books

Juno 12, 2014

In the memo, Davis wrote:

• Next Generation's bank-account records, obtained with a grand-jury

subpoena. showed deposits of S1.3 million in go*,-ernment grants in a

one-year period. lr

Another 5521,000 in the account came frorn poli cal campaigns, rent

Payments and the interrningling of money front die Sunday Sun, which

Is owned and operated by Mondesire, the momosaid.

• Next Generation paid $2.273 to the Philadelphia Club, a private and

exclusive club in Center City.

'Next Generation spent 'tens of thousands," %wiling checks to pay

Mondesire's American Express bill for -clothes, fftod, lodging gas and

entertainment and a loan from Mellon Bank. There were also checks

written to Mondesire and to 'cash."

htto)articles.ohilly.com/2014-06-06fnews/50390468 memo-whvatt-mondesire-oeneration-communitv-develoornent-coro 114

1/6/2015 State AG.probed PNIly NAACP leader Mondesires finances 5 years ago - Philly.com

• Next Generation wrote checks for $169,960 toliCharles and Oaudia a,

Tasco and their company. C&C Construction.(Charles Tasco Is the

son of City Councilwoman Marian Taste, a friend and political ally of

Mondesires for rnore than three decades.) '1

• S6.431 in CUES money was given to Mondesire for what Garrett

called consulting. That type of expense was not allowed, according to

the rules of the grant.

• In *various correspondence between Garrett ird Mondesire

discovered by investigators, she questioned payments of more than

570,000 he rnade to Claudia Tasco.

• CUES paid 51,099 for health insurance for MOndesire.

• Davis wanted to question Mondesire - and povibly subpoena him for

sworn grand-jury testimony - about Garrett. CUES and Next

Generation.

Never questioned

kilondesire. a forrner Inquirer reporter who served as the top aide to the late U.S. Rep. Bill Gray. said no one from the A.G.'s

Office ever questioned NM

*We didn't WO any money for personal gain," Mondesire said.

He said that he has not seen the A.G. Offices ocuments and twice declined an offer frorn the Daily News to review them.

Mondesire said C&C Censtruction worked on foUr properties, including the NAACP headquarters and his newspaper office, where

the Next Generation non-profit is also located.

•We bought supplies with rny American Expres card for construction," he said.

*They never asked me a single question back ii2O09. We rehabbed the buildings. We spent money buying stuff for the buildings.

construction and paying off developers.*

Gan-ett declined to comment about the investigations. Her daughter did not respond to requests for comment.

The May 2010 news release about Garretes arrest featured Corbett laying out the charges.

Corbett did not respond this week to two questi ns: Was he briefed on the Mondesire investigation and did he play a role in

deciding what happened with that probe?

Mondesire was suspended by the NAACP's natiorell headquarters in April after he feuded publicly with board members about the

finances of the local chapter and Next Generatitšn.

Those board members - Sid Booker, Donald "D hy. Bins and the Rev. Elisha Morris - also were suspended.

Booker and Morris. who say they are still Next Generation board mernbers, are now asking a Common Pleas judge to force

Mondesire to show them the nonprofit's financial records.

As a fudge considers that request. Kanes staff r reviewing what became of the 2009 Mondesire probe.

David Peifer. who heads the A.G.'s Bureau of Special Investigations, on March 21 interviewed Michael Miletto. the special agent

who investigated Garrett and Mondesire,

The Deity News obtained a transcript of that taped interview.

Miletto told Peifer that he subpoenaed Next elenerations bank account, the transcript shows,

'Viten I did that, I found that there was a whole bunch of money that appeared to me to be donations to the NAACP. not

(Mondesirej, and they were going into Next Generation's account and they were being used for(Mondesires)lifestyle - much of

it: Miletto told Pellet.

Miletto said he was taken off the case after Fine and Costanzo were told about the probe, according to the transcript.

Milano said *criminal activity was just ignored' after that. He added that two accountants who had worked for Mondesire had

provided taped statements, with one asking for fitununity and the other asking tor protection.

Fine and Costanzo declined to comment about the Mondesire investigation, citing the secrecy of grand-jury proceedings.

Davis. now in private practice, also declined to lomment, citing the same restriction.

Mitetto, who still works for the A.G.'s office. alscideclined to comment.

Peifer referred questions to Kane's comrnunicatiOns staff.

J.J. Abbott, a spokesman for Kane, declined to comment.

The Kane-Fina feud

Fine and Costanzo have a complicated and controversial relationship with Kane.

Kane criticized Corbett's tenure as attorney general when she ran for cdfice in 2012, specifically targeting the Penn State child-

abuse scandal that sent former assistant football coach Jerry Sandusky to prison.

Kane's staff Is now conducting an extensive review of that investigation.

Fine led the Sandusky probe.

Kane, on Feb, 5, issued a statement noting that per offices Sandusky review had been underway for one year, adding that delays

in the undertaking *will be described in more detail when the report is rnade public."

httrellarticles.ohillv.com/2014-06-06hews/50390468 1 memo-whvatt-Mondesire-oeneratiOn-CornmuniN-develooment-coro 2/4

1/6/2015 State A.G. probed Philly NAACP leader Mcodesire's finances 5 years ago- Philly.com

A month later, the Inquirer reponed that Kane declined to pursue an investigation previously led by Fina and Costanza starting in

2010, that used Philadelphia lobbyist Tyron Ali'as a confidential informant to tape conversations with four Philly state

representatives and a former Traffic Court judga On the tapes, the representatives and judge accept cash or gifts from Ali.

Kane has said Fine droppoci 2,033 criminal courits against Ali, who had been charged with stealing S430,000 from a state

program, 24 days before she was sworn into office.

She said that 'extraordinarily lenient deal 'crippled the chance of this case succeeding in prosecution.'

Fina, in a letter published by the Inquirer a week' her the first story ran, called on Kano to explain her decision.

The Inquirer also published a letter that day from Firm's boss, Williams, critical of Kane.

Kane eventually tumed over the Ali case file 101i/24143ms, who is now examining whether charges can be brought against the four

representatives and the Traffic Court judge, whOis currently on trial in an unrelated federal corruption case.

On Twitter: @ChrisSrennagiN

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