Eron Lloyd
By Don Spatz, Mayor Vaughn D. Spencer's top aide admitted Monday to participating in a bribery scheme, shedding more light on the federal “pay to play” investigation of City Hall and the kingpin identified as “Public Official No. 1.”Eron Lloyd, Spencer's special assistant, pleaded guilty in federal court to conspiracy for helping Public Official No. 1 bribe former City Council President Francis G. Acosta, and for demanding hefty campaign contributions from vendors who in turn would get lucrative city contracts. Federal prosecutors do not identify Spencer in the documents and Spencer has not been charged with any crime. However, prosecutors say Public Official No. 1 was Lloyd's boss and that Lloyd was a member of his campaign team, a description that could only refer to Spencer. Prosecutors also described Public Official No. 1 as someone “who had the power to sign into law ordinances that had been passed by City Council.” The job description matches the mayor. Acosta had pleaded guilty in August to conspiracy in taking the bribe. At the time, Acosta's attorney, Robert Goldman, identified Spencer as Public Official No. 1 and as the man giving the bribe. Prosecutors also stated Monday that Public Official No. 1 lost in the May primary and was willing to offer city contracts as an incentive to persuade contributors to help take care of the campaign's debt. Spencer lost to Wally Scott in the Democratic mayoral primary in May. Following Lloyd's guilty plea in U.S. District Court in Philadelphia, U.S. District Judge Juan R. Sanchez scheduled his sentencing hearing for March 3. Lloyd faces a possible maximum sentence of five years in prison, a fine, and three years of supervised release, federal prosecutors said. Lloyd had been on leave from the mayor's office for several weeks, although he remains a board member of the Reading Parking Authority. Neither Lloyd nor Spencer could be reached for comment.
- Lloyd aided investigation: The charges against Lloyd follow FBI raids on Reading City Hall and Spencer's home in July, and stem from a federal grand jury's probe of so-called pay-to-play activities in Reading and Allentown, in which big campaign donors get lucrative city contracts.According to federal prosecutors, those activities were under way in Reading at least since April 2014, although they have not yet identified which donors obtained what contracts. Acosta had resigned from council after admitting to taking an $1,800 bribe in the form of a campaign contribution for his wife, Rebecca, who was running for district judge. The bribe was for trying to convince city council to repeal city campaign contribution limits just weeks before the May primary, with another $1,800 promised if Acosta was successful. But city council rejected any repeal of the campaign contribution rules. Prosecutors had said Acosta lied to them about the bribery, then within 24 hours quietly left the conspiracy and began working with federal prosecutors. Lloyd followed the same route, they said. They said Lloyd lied to the FBI on July 10, claiming he knew nothing about the bribery and nothing about the demands by Public Official No. 1 for campaign contributions in return for contracts. But within a week Lloyd quietly withdrew from the conspiracy and began cooperating with the FBI, they said. Still, prosecutors said, Lloyd had been part of those activities since at least June 30, 2014.
- City contracts for donors: After losing the Democratic mayor primary in May, Spencer owed more than $100,000 to people providing loans to his campaign.Prosecutors said Public Official No. 1 “believed that his best chance of retiring his campaign debt was to obtain additional campaign contributions from parties who sought favorable official action, including the awarding of contracts, from the City of Reading before the expiration of Public Official No. 1's term of office.” Spencer's term expires on Jan. 3. “On or about June 11, 2015, defendant Eron Lloyd met with Public Official No. 1 and others … for the purpose of implementing a plan to retire Public Official No. 1's campaign debt by causing city contracts, collectively worth millions of dollars, to be awarded to vendors who would be willing to provide Public Official No. 1 with sufficiently large campaign contributions,” prosecutors said. From April 2014 through at least July 10 of this year, they said, “Public Official No. 1 solicited, demanded, and received campaign contributions from parties who sought to receive or had previously received favorable official action, including the awarding of contracts, from the city of Reading.” Lloyd was a part of that effort, prosecutors said. “Public Official No. 1 caused and attempted to cause certain municipal staff, including defendant Eron Lloyd, to take official action favorable to certain vendors who had provided, or were expected to provide, campaign contributions benefitting Public Official No. 1,” prosecutors said. They also said Public Official No. 1 lied to the FBI on July 8, when he told FBI agents that he was unaware of any attempt to bribe Acosta. Federal court documents describe alleged illegal activities by other individuals who “conspired and agreed to commit bribery offenses in violation of federal criminal law.” In addition, the $1,800 check was written on the account of an outside political action committee, Citizens for a Greater Reading. Contact Don Spatz: 610-371-5027 or dspatz@readingeagle.com. Source: Reading Eagle - NEWS
