Uncovering the Alleged Misuse of Public Funds: A Detailed Investigation into the Former Williamsport Finance Director

In a shocking revelation, a former finance director of Williamsport, Pennsylvania, has been accused of misusing over 0,000 in city, state, and federal funds intended for transportation-related projects. The allegations, outlined in a 34-page affidavit, paint a picture of a decades-long scheme of commingling and diverting public funds for unauthorized purposes, including providing financial support for a non-governmental entity.

Exposing the Alleged Misappropriation of Funds

The Misuse of State and Federal Funds

The investigation, led by the state Attorney General's office, alleges that William "Bill" Nichols Jr., the former general manager of River Valley Transit (RVT), directly commingled and ordered staff to mix state and federal funds intended for transportation-related projects for other purposes. This alleged misrepresentation of where the money was supposed to go and the orchestration of decades-long entanglements have led to Nichols being charged with felony counts of theft and tampering with records.

The Diversion of Funds to the Hiawatha

The grand jury's investigation revealed that Nichols, while serving as the finance director for the city, improperly utilized public funds to provide financial support for the Hiawatha, a non-governmental entity. The Hiawatha, a paddlewheel boat on the Susquehanna River that provides pleasure cruises, is a well-known tourist attraction in Williamsport.

Manipulating Financial Data to Avoid Oversight

The affidavit also alleges that Nichols engaged in a course of conduct designed to prevent the state Department of Transportation (PennDOT) from discovering that he, through RVT, was diverting public funds for improper uses. PennDOT required financial data to be provided to them in order to provide oversight of restricted state transit funds, but this data was allegedly regularly manipulated to prevent PennDOT from discovering RVT's unauthorized expenses.

Questionable Payroll Practices

The investigation also uncovered allegations that Nichols, as the manager of the Endless Mountains Transportation Authority (EMTA), put at least two people on the EMTA payroll who did not work for the organization. Additionally, Nichols is accused of authorizing the payment of Hiawatha employees through the city, instead of directly from the Hiawatha's account.

Misuse of Compressed Natural Gas Grant Funds

The affidavit states an allegation of improper use of compressed natural gas (CNG) grant funds, with a vendor being paid 4,519 for work that was wholly unrelated to the CNG project.

Potential Wiretap Violation

The grand jury also heard testimony of a possible wiretap violation. In a 2018 conversation, the mayor could be heard discussing Nichols, saying he does not control city finances but rather reports them. The mayor said he did not consent to the conversation being recorded and was unaware of its existence until the time of his testimony.

No Evidence of Personal Benefit

It is important to note that there is no evidence that indicates Nichols used any of the misappropriated funds for personal benefit or purchases. The case is being prosecuted by the Chief Deputy Attorney General, Brian Zarallo.

Ongoing Efforts to Ensure Financial Compliance

Following Nichols' termination in January 2020, the Williamsport Bureau of Transportation (River Valley Transit) has been renamed the River Valley Transit Authority and is now working closely with PennDOT to ensure financial compliance and transparency.The allegations against the former finance director of Williamsport have raised serious concerns about the misuse of public funds and the need for stronger oversight and accountability measures in the management of transportation-related projects. As the investigation continues, the public will be closely watching to see how the authorities address these troubling allegations and work to restore trust in the city's financial management.