DV Journal

This article first appeared in Broad + Liberty.

The multi-year FBI investigation in Falls Township is digging into whether the township’s administration contributed to or even actively fostered a culture in which unions — and one union in particular — were able to put pressure on local businesses to hire more unionized labor or, if not, face government harassment through permitting delays, according to multiple sources.

Sources who spoke to Broad + Liberty are well placed to have firsthand knowledge of matters related to both the township, as well as the investigation. All requested to speak anonymously out of concerns of retaliation.

Sources confirmed the union side of the investigation is mainly focused on the International Brotherhood of Electrical Workers Local Number 269, based across the river from the township in Trenton, New Jersey. Previous media reports have also indicated that the Local 269 was a focus the investigation.

Previous media reports have also indicated that a federal grand jury has been impaneled on the matter and has been taking testimony, but those reports have not specified the nature of the investigation. Those reports also established that Bucks County Board of Commissioners Chair Bob Harvie, the longtime former chair of Falls Township’s board of supervisors was summoned to testify before the grand jury, raising the specter about whether the ongoing criminal investigation could have an impact on the county’s hotly contested election for county commissioners.

For several years now, two of the township’s longest serving supervisors have been members of IBEW Local 269 — Jeff Dence and Jeff Boraski. But what has seldom, if ever, been reported is the towering influence the IBEW has had over the township through the last dozen years in terms of donations from its federal political action committee to those individuals.

That tally of campaign donations swells even larger if two other township supervisors are included: Bob Harvie and Jeff Rocco. Harvie served as the chairman of the Falls Township Board of Supervisors from 2008 to 2020, according to his online biography. Rocco served on the board from 2012 to 2021. Neither are IBEW members.

Since 2009, the IBEW’s federal PAC (which can donate to local candidates) has given $397,950 to the campaign accounts of those four individuals, according to Federal Election Commission records — a staggering sum for a township of approximately 34,000 persons of whom only 10,500 voted in the most recent general election, and which already has a natural Democratic bent.

The donation figure represents about four-and-a-half percent of all the political money donated by the same IBEW federal PAC to all other Pennsylvania candidates and committees over the same time period, according to a Broad + Liberty analysis of FEC records. Yet, in terms of population, Falls Township represents two-tenths of one percent of Pennsylvania.

The lion’s share of that political money — $214,000 — went to Dence. The rest was mainly split between $80,000 for Harvie and about $76,000 for Boraski.

(The same IBEW PAC has made a small number of donations to others who have served on the Falls Township Board. For example, the IBEW has also made one donation each to Erin Mullen and John Palmer, both of whom are currently serving on the township’s board of supervisors. Some of the donations included in the above tally also include donations made to Harvey while he was running for Bucks County commissioner in 2019 and after.)

The sources indicated the main question in the federal probe was a simple scheme: a business which might be expanding an existing building or starting new construction was approached by someone who urged the business owner to choose union labor. If the business owner refused, various permits needed to keep the project on schedule were held up by the township government.

Broad + Liberty’s sources pointed to one construction project in particular: a massive building project announced in 2015 by KVK Technologies, a specialty pharmaceutical company. In the spring of 2015, the township’s board of supervisors approved a new office and warehouse complex to be built on Cabot Blvd. A request for comment to KVT was not returned or was not successful.

The sources were not able to point to any individual for any specific act, with one exception. That exception is not being published in this story because it was only offered by a single source, and was not independently corroborated by other sources.

Although the investigation has been going on for years including the impaneling of a grand jury in Philadelphia, no indictments have yet been handed up. All persons named in this report are presumed innocent until convicted in a court of law.

The business manager for IBEW Local 269, Steve Aldrich, said the allegations are false.

When asked by phone for the union’s comment, Aldrich said: “Same thing we told the other paper over there in Bucks County, the same thing — the grand jury, there’s nothing. There never has been. We don’t do that s*** here. That’s not how we operate. That’s it. I don’t have any other comments than there’s nothing there and I can’t believe you’re still asking this from 2010. It’s like there’s got to be some other news that you can — to look for. There’s nothing here. I have no idea. You must be bored.”

The sources also indicated that the alleged wrongdoing was a driving factor in the yo-yo-like employment of the township’s former manager, Peter Gray.

Gray proffered his resignation in September 2019, but then rescinded it when the township offered him a retroactive pay raise, according to a report from LevittownNow.com. Four months later, Gray left the township for good and is currently the borough manager for New Hope.

The sources indicated that Gray kept a book or log of some sort that chronicled the alleged activity. That idea is key, as LevittownNow.com has reported a year ago that its own sources said “FBI special agents and prosecutors are in possession of a significant number of documents that went through former township manager Gray’s office.”

In September last year, Levittown Now reported that numerous individuals have testified before the grand jury investigating the matter, including Harvie and Gray.

The township is also dealing with two individuals suing it either over whistleblower claims or allegations that they were asked to perform illegal or unethical acts while in office and were then retaliated against when they objected.

“A fired Falls Township police officer claims in a new lawsuit that he has provided information to the FBI as part of an ongoing investigation involving the municipality’s government,” said a LevittownNow.com report from January.  “He also says he was wrongfully terminated by township officials because he is a whistleblower.”

In 2020, the township’s former code enforcement officer quit and later filed suit, alleging he had been asked by township officials to manipulate an inspection of a specific home. The allegations in the suit are contained to that incident, and seem unlikely to weigh on the FBI investigation.

The IBEW’s interest in Falls Township, as evidenced by its campaign donations, matches a time when the union seemed to be growing its influence in southeast Pennsylvania by leaps and bounds.

Through most of the second decade, the IBEW looked ascendant in the region, emblemized by John Dougherty, the business manager of the IBEW Local 98, based in Philadelphia. Dougherty, more commonly known by the nickname “Johnny Doc” was indisputably one of the most influential political power brokers in the region until he was indicted by the federal government in 2019.

The apex of Dougherty’s influence was on vivid display in 2015, when he marshaled more than $1.5 million in direct and in-kind donations to his brother’s successful run for the Pennsylvania State Supreme Court — an election that helped swing the balance of power at the top court and continues to reverberate politically to this day.

Dougherty also single-handedly funded the election of Bobby Henon, an IBEW member who served for ten years as a member of Philadelphia’s City Council. Henon was charged along with Dougherty with corruption charges in 2019. He was convicted and is currently serving a three-and-a-half years term in federal prison.

Falls Township has an established Democratic political bent, based on election results dating back more than a decade.

For example, in the hotly contested 2010 U.S. Senate election between Democrat Joe Sestak and Republican Pat Toomey, Sestak easily carried Falls Township 6,000 to 4,200. Statewide, Toomey eked out a 51-49 win in a Republican wave year.

Four of the five current members of the elected board of supervisors are Democrats.

None of the current members of the Falls Township Board of Supervisors, including Dence and Boraski, responded to a request for comment. Former members of the board, including Commissioner Harvie and Rocco, did not respond to a request for comment. For this outreach, Broad + Liberty used Falls Township government email addresses, personal emails gleaned from campaign finance reports, as well as text messages sent to phone numbers also taken from campaign finance reports.

A request for comment was also not returned from the IBEW national office in Washington D.C. which controls the PAC mentioned in this story, or from the U.S. Department of Justice.

Sources with further information on any aspect of this story — governance in Falls Township, knowledge of union activities in the township, etc — are encouraged to reach out to this reporter at [email protected], confidentiality assured.

Like a Phoenix, the U.S. Steel Fairless Works site that closed its doors and left thousands of workers in the lurch in 2001 will have a new use.

On Thursday, chilly wind and blowing dust did not deter the groundbreaking for a $1.5 billion project for the new Keystone Trade Center to be built in Falls Township by NorthPoint.

Among those wielding ceremonial shovels were state Sen. Steve Santarsiero; Jeff Dence, chairman, Falls Township Board of Supervisors; Robert Harvie Jr., Bucks County Commissioners chairman; and Jeremy Michael, vice president of Development for NorthPoint Development.

At the 1,800-acre property, NorthPoint plans to build 15 million square feet of warehouse and light industrial use buildings, said Eric Yovanovick, project manager. He expects the first building to be completed by the end of the year, with 19 more structures to follow.

NorthPoint received a Keystone Opportunity Improvement Zone waiver allowing it to benefit from a 15-year tax abatement, Santarsiero said.

Sen. Steve Santarsiero

“The economic return on this is going to be tremendous for the town, the county, and the school district, as well,” said Santarsiero (D-Bucks). “Ultimately, when this is up and running, and it’s employing about 10,000 people, that’s an economic boom for the entire region.”

“In fact, they’re giving the school district through an agreement, (they’re) making the school district whole,” Santarsiero said.

“We all had to come together to approve this extension of the Opportunity Zone so they could get the tax abatement,” said TR Kennan, president of the Pennsbury School Board. “But the community benefits.”

And even though NorthPoint’s new Keystone Trade Center will not be paying taxes, it will pay $500,000 to the school district each year for 15 years, plus an additional $110,000 in payments in lieu of taxes each year, said Kennan.

“It’s a win-win for everybody,” he said. “They’ll bring jobs,” and those employees will pay taxes.

Michael said he met so many people during his time in the area who either worked at the steel plant or had relatives who did.

“It’s amazing how much the site is part of the community,“ Michael said. “A brownfield development like this is certainly a heavy lift.” But, he added, “many people have applied their expertise to put the site back into productive use. We’re working to bring back the site’s rich history.”

He thanked the government officials and the consultants who have worked to make the deal happen. NorthPoint purchased the property in 2020 and it was “a major transaction for all parties involved.”

When it is completed, it will be “the largest Class A industrial development on the East Coast,” he said. When they first approached the community, “we were met with a certain level of skepticism.” But they won over their critics.

“Capital goes where capital is welcome,” he said.

“Location, location, location really does mean something,” said Harvie. He noted that 80 years ago, the land was alfalfa fields, then the largest steel mill in the nation was built there that offered “good jobs” and helped to build Lower Bucks County.

But the area is a prime location, located between Philadelphia and New York with easy access to I-95 and other highways, he said. The new development will offer thousands of construction jobs and then thousands of permanent jobs.

“We’ve got one of the largest e-commerce- sites in the states,” said Harvie, adding he had once been a Falls Township supervisor.

“Having a willing partner owning this site makes a tremendous amount of difference,” Harvie said.

(from left) Rich Goodman, NorthPoint development manager; Tim Holliday, regional vice president at NorthPoint; state Rep. Frank Farry, land use attorney at Begley Carlin; Troy McMahan, senior director at Northwestern Mutual; TR Kannan, Pennsbury School Board president; state Sen. Steve Santarsiero; Rep. John Galloway; Falls Supervisors Chairman Jeff Dence; Bucks County Commissioners Chairman Robert Harvie; Jeremy Michael, NorthPoint vice president of development; Eric Yovanovich, NorthPoint project manager.

State Rep. John Galloway (D-Levittown) said the development “has been a collaborative effort between many people,” both Democrats and Republicans.

“I was born in Levittown 62 years ago,” he said. “My brothers worked in the steel mill. This was the center of our whole world. This was the economic driver of the lower end (of Bucks County).”

But when it closed, things became very difficult for people because jobs disappeared.

“I want to thank NorthPoint for more than just creating 10,000 jobs,” said Galloway. “The ceremonial digging of this dirt represents the rebirth of the lower end (and) the hope of the people who, for a long time, had no hope at all,” he said.

Northpoint, a St. Louis, Missouri-based corporation, has raised more than $9.5 billion since 2002, developed and managed more than 126 million square feet of industrial space, and created more than 65,000 jobs with 423 industrial partners around the country, officials said.

NorthPoint Development started out as a privately held commercial real estate developer specializing in industrial and multi-family development. Since then, NorthPoint has grown to 10 companies, emphasizing a factory-to-front-door model, officials said.

The corporation also touts its “Beyond the Contract,” philosophy which embodies the concept that no contract can be written to reflect everything that will occur in a complex real estate transaction.

“Our approach in all business relationships is to be fair and operate by the ‘Golden Rule,’” officials said.

Follow us on social media: Twitter: @DV_Journal or Facebook.com/DelawareValleyJournal

Falls Township Police Chief Nelson Whitney dropped a bomb days after being placed on paid administrative leave. Not only is he being investigated by the township for performance-related allegations–but his attorney says Whitney is also a witness in a federal probe.

The move followed a no-confidence vote from the local police union, citing an “absolutely toxic” work environment and “non-existent morale,” according to media reports. In Whitney’s absence, Lt. Henry Ward is now in charge of the 53-person department.

Township officials confirmed the suspension but refused to provide Whitney’s salary and declined further comment on the personnel matter.

In a statement released later by his lawyer, Whitney claimed he was served with a federal grand jury subpoena.

Attorney Scott Pollins said authorities sought his client’s cooperation in an ongoing probe, but he did not specify the nature of the investigation.

The top cop hinted that he feared his cooperation was linked to the Police Association of Falls Township’s (PAFT) no-confidence vote.

“Chief Whitney has retained legal counsel to investigate whether the chief’s cooperation in a federal investigation has any connection to the recent no-confidence vote by PAFT or him being placed on administrative leave by Falls Township,” Pollins wrote.

Pollins did not respond to a phone call from Delaware Valley Journal seeking additional comment.

A 33-year department veteran, Whitney became the acting township police chief in late 2020 following Chief William Cox’s retirement. He was appointed to the position permanently at the start of last year.

His attorney claims Whitney “sought to make cultural changes and implement efficient business practices” in the department that may have ruffled feathers.

Union leaders paint a much bleaker picture of the police force under Whitney, which resulted in 40 of 48 members favoring the no-confidence measure.

In a letter obtained by LevittownNow, Union President Edward Elmore cited problems solving grievances and Whitney’s apparent “contempt” for rank-and-file officers, including some who were so “disillusioned with the workplace” that they left for another department not long into tenures with Falls Township Police.

The union leader also claimed Whitney referred to officers as “hunters” and “continued and expanded” illegal ticket quota practices in the department, offering officers perks for issuing more citations.

“One of the most repugnant aspects was when the chief offered Wawa gift cards to any officer who could beat his ‘high score’ with tickets within a given month,” Elmore wrote. “This practice has also created an enormous financial liability for the township’s citizens. By statute, all such citations are null and void; each may be required to be refunded. This liability increases with each passing day that this practice is not ended.”

The Bucks County Courier Times reported at least five former and current Falls Township police officers filed suits against the township and police over allegations that they faced harassment, discrimination, and retaliation.

An arbitrator earlier this year ordered fired officer Stephanie Metterle to be reinstated after she was accused of lying in a 2019 Pennsylvania Human Relations Commission complaint about serving on the township’s Major Incident Response Team, the outlet reported.

Follow us on social media: Twitter: @DV_Journal or Facebook.com/DelawareValleyJournal