Case 5:17-cr-00255-JS Document 1 Filed 05/11/17 Page 1 of 8

IN THE UNITED STATES DISTRICT COURT

FOR THE EASTERN DISTRICT OF PENNSYLVANIA

UNITED STATES OF AMERICA CRIMINAL NO.

DATE FILED:

PATRICK REGAN VIOLATION:

18 U.S.C. $ 371 (conspiracy to commit
maiUwire fraud - 1 count)

INFORMATION

COUNT ONE

TTIE UNITED STATES ATTORNEY CHARGES THAT:

At all times material to this information:

1. Public Official #3, known to the United States Attomey, was a public

official who represented the City of Allentown though an elective office. Public Official #3's

office vested him with actual and perceived authority and influence over, among other things,

the awarding of certain municipal contracts by the City of Allentown.

2. Public Official #3's office also vested him with actual and perceived

authority over certain other public officials including Francis Dougherty, charged elsewhere,

who was the managing director for the City of Allentown at all times material to this

information.

3. On or about September 8,2013. Public Official #3, while maintaining

his elective office in Allentown, formally announced his candidacy in an election for a position

in the state government. He terminated this campaign a few months later.

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4. In early 2015, while maintaining his elective office in Allentown, Public

Official #3 discussed seeking election for a position in the federal govemment. After privately

deciding to run, Public Official #3 pubticly announced his candidacy for this position on or

about April 17,2015.

5. To realize his ultimate goal of ascending to a higher elective office.

Public Official #3, while still serving as a public official in Allentown, hired consultants and

directed them to help him raise campaign contributions from donors, including parties who had

profited from their dealings with the City of Allentown and who sought favorable featment

from the City of Allentown. Public Official #3 also caused and directed Allentown officials to

give preferential treatment to certain ofhis past and potential political donors.

6. The City of Allentown issued a Request for Qualifications (RFQ) in

February 2015 and a Request for Proposal (RFP) in May 2015 for the Lighting Design and

Installation Project/GESA contract ("Street Lights Contract"), with a face value of

approximately $3,000,000, to replace the city's old street lights with LED lights.

7. Defendant PATRICK REGAN was an officer of Company #1, which

submitted an RFQ and an RFP for the City of Allentown's Street Lights Contract.

8. Under the terms of the City of Allentown's RFQ, responses to the RFe

would be evaluated based upon the completeness and quality of the information provided, with

scoring weights assigned to the ability to follow instructions, experience, and the project

management and project team. Under the terms of the City of Allentown's RFP, the award of
the contract would be made "to that responsive and responsible proposer whose proposal,

conforming to specifications, will be most advantageous to the City; price and other factors

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considered, such as delivery time, quality, service, etc. The award may or may not be made to

the firm with the lowest price."

9. Relying on the representations in the RFQ and the RFP, Companies #l

through #6 submitted RFQ's for the Street Lights Contract. Four of the companies were

eliminated after the RFQs were submitted. Company #1 eventually was awarded the contract by

the City of Allentown.

10. From at least in or about December 2013, until at least on or about

June 30, 2015, defendant PATRICK REGAN, Francis Dougherty, Public Official #3, and others

known to the United States Attomey, knowingly devised and intended to devise a scheme and

artifice to defraud and to obtain money or property by means of false or fraudulent pretenses,

representations, or promises.

The Defendant's Participation in the Conspiracy

11. From inoraboutDecember20l3 until onoraboutJune 30, 2015, in

Allentown. in the Eastem District of Pennsylvania, and elsewhere, defendant

PATRICK REGAN

conspired and agreed, together with Francis Dougherty, Public Ofiicial #3, and others known to

the United States Attomey to commit offenses against the United States, that is:

a) having devised a scheme to defraud Company #2, or to obtain money

or property by means of false or fraudulent pretenses, representations,

or promises, knowingly deposited or caused to be deposited any matter

or thing whatever to be sent or delivered by the U.S. Mail and any

private or commercial interstate carrier, in violation of Title I 8, United

States Code, Section 1341;

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b) having devised a scheme to defraud Company #2, or to obtain money

or property by means of false or fraudulent pretenses, representations.

or promises, knowingly transmitted or caused to be transmitted by

means of wire in interstate commerce any wfiting. sign, signal, picture

or sound for the purpose ofexecuting such scheme or artifice. in

violation of Title 18, United States Code, Section 1343.

MANNER AND MEANS

13. To avoid the perception that he was involved in the decision to award the

Street Lights Contract to Company #i, Pubtic Official #3 communicated his preference for

Company #l to others, including Francis Dougherty, who could assert actual and apparent

authority over the award process for the Street Lights Contract.

14. Upon leaming of Public Official #3's preference for Company #1, Francis

Dougherty personally and directly interfered with the award process in order to cause Company

#1 to be awarded the Street Lights Contract.

15. Defendant PATRICK REACAN and another person associated with

Company #1, who is known to the United States Attomey, wrote language favorable to

Company #1 that Francis Dougherty and others ordered to be included in the City of

Allentown's RFQ and RFP for the Street Lights Contract.

16. Defendant PATRICK REGAN made contributions to Public Official #3's

campaigns for local, state, and federal office, and made these contributions before, during, and

after the RFQ or RFP for the Street Lights Contract were being considered by the City of

Allentown.

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17. Based upon the language in the RFQ and RFP, competitors believed that their

proposals would receive fair and equal consideration for the Street Lights Contract, when in

fact, as defendant PATRICK REGAN, Public Official #3, Francis Dougherty, and others known

to the United States Attomey well knew, the award process was rigged to cause Company #l to

be awarded the contract.

18. During the RFQ and RFP process. mailed and electronic communications

occurred and were reasonably anticipated between the City of Allentown and competitors for

the Street Lights Contract.

OVERT ACTS

In furtherance of this conspiracy, defendant PATRICK REGAN and

others committed the following overt acts, among others:

l. On or about February 26,2014, defendant PATRICK REGAN had a

discussion with a co-conspirator in which defendant RECAN was told that a process had been

set up with Francis Dougherty so that defendant PATRICK REGAN could rewrite the RFP and

give it to Company #1's consultant, who would then give it to Francis Dougherty, providing

Dougherty with a "degree of separation." Defendant REGAN was told that the process was

designed to eliminate competition.

2. On or about October 2, 2014, a person known to the United States

Attomey and a consultant to Company #l said that he wrote the RFP for the Street Lights

Contract.

3. On or about November 6, 2014, a representative of Company #1

contributed $500 to Public Official #3's political action committee.

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4. On or about November 6, 2014. defendant PATRICK REGAN

contributed $ 1,000 to Pubtic official #3's political action committee

5. In or about January 2015 to in or about March, 2015, Public Official #3

told Francis Dougherty that he wanted Company #l to win the Street Lights contract.

6. In or about Januuy 2015 toinoraboutFebruary20l5,a co-conspirator

gave Francis Dougherty a thumb drive with suggested RFQs and RFP language favorable to

Company #1.

7. In or about January 2015 to in or about February 2015, Francis Dougherty

gave the thumb drive to his subordinates at the Allentown Public Works Office, which was

devetoping an RFQ and R-FP for the Street Lights Contract, with the intention of getting the

Public Works Offrce to write an RFQ and an RFP which were favorable to Company #1.

8. On or about January 28,2015, Public Official #3 met with defendant

PATRICK REGAN and instructed him to send Public Official #3 "the performance contract

language" for the Street Lights Contract.

9. On or about January 28,2015, defendant PATRICK REGAN agreed to

make a contribution to Public Official #3 after a person known to the United States Attomey

told defendant REGAN that the RFP was exactly what Company #l's consultant wanted, that

the deal would be his, and that Public Official #3 had some plans and needed his vendors to give

back a little bit.

10. On or about February 25,2015, a person known to the United States

Attomey told defendant PATRICK REGAN that the Street Lights RFP was "all teed up and

ready to go for you."

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II . On or about February 27,2015. an RFQ was published by the City of

Allentown for the Street Lights Contract.

12. Between February 27.2015 and March 27,2015, Francis Dougherty

confronted the acting Public Works Director and threatened to fire someone because the

language favorable to Company #1 had been left out ofthe RFQ for the Street Lights Contract.

13. On or about March 6, 2015, defendant PATRICK REGAN made a S1,500

contribution to Public Offrcial #3's political action committee.

14. On or about March 9, 20'15, the City of Allentown e-mailed the Street

Lights RIQ to Company #2.

15. On or about March27,201 5, Company #2 submitted an RFQ for the

Street Lights Contract. The cost to Company #2 for developing the RFQ was between $2,000 to

$5.000.

16. On or about March27,20l5, the deadline for submitting RFQs on the

Street Lighting Contract, Francis Dougherty called one ofPublic Official #3's consultants and

told him that Company #l had not yet submitted their RFQ.

17 . On or about March 3 l, 2015, Francis Dougherty sent an e-mail message

to the consultants for Company #l to which he attached the RFQ Tabulation Memo, which

inctuded a listing of Company #l's competitors for the Street Lights contract.

18. Between March 30,2015 and April 9,2015, the city of Allentown

eliminated four of the six companies submitting RFQs for the Street Lights Contract.

19. On or about April 13, 2015, the City of Allentown e-mailed an invitation

to interview on the RIQ to Company #2.

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20. On or about April 17,2015, Public Official #3 announced that he was

running for federal office.

21. On or about Apfl22,2015, the City of Allentown mailed a letter to

Company #2 informing them that they were on the short-list for the RFP.

22. On or about May 1, 2015, the City of Allentown issued an RFP for the

Street Lights Contract to Company #1 and Company #2.

23. On June 19,2015, after Company #2 had decided to no longer compete

for the Street Lights Contract, the City of Allentown mailed a contract award letter to Company

#l for the Street Lights Contract.

24. On or about June 30, 201 5, a representative of Company #1 contributed

$1,000 to Public Official #3's political action committee.

25. On or about June 30, 2015, defendant PATRICK REGAN contributed

$1,000 to Public Official #3's political action committee.

All in violation of Title 18, United States Code, Section 371.

o,/
J.-./ At
Lv tul a
LOUIS D. LAPPEN
Acting United States Attorney