A former Williamsport finance director, William “Bill” Nichols Jr., has been accused of a serious financial scandal involving the mismanagement and misappropriation of over $500,000 in state and federal funds. As the general manager of River Valley Transit (RVT) and finance director for the city, Nichols allegedly orchestrated a scheme to commingle public funds meant for transportation projects with other uses, leading to felony charges.
Major Allegations Against Ex-Finance Director Nichols
Nichols, aged 71, served as the general manager of RVT for over four decades, a position he held until his termination in January 2020. During his tenure, he also managed several associated agencies, including the Endless Mountains Transportation Authority (EMTA), the Williamsport Parking Authority (WPA), and the Hiawatha Inc. The extensive allegations against Nichols, detailed in a 34-page affidavit by state Attorney General Special Agent Kevin M. Schofield, reveal a pattern of financial misconduct and deceptive practices.
Key Allegations:
- Commingling Funds: Nichols is accused of misusing and directing staff to mix state and federal funds allocated for transportation projects with other financial activities, diverting them for personal or unrelated uses.
- Fraudulent Financial Practices: He allegedly manipulated financial records to prevent the Pennsylvania Department of Transportation (PennDOT) from detecting the misuse of funds.
- Unauthorized Payroll Entries: Nichols is accused of placing employees on the EMTA payroll who did not actually work for the agency.
- Misappropriation of Grants: There are allegations of improper use of a compressed natural gas grant, with a vendor receiving $584,519 for unrelated work.
Impact on River Valley Transit and Associated Entities
River Valley Transit, now known as River Valley Transit Authority, is responsible for providing fixed-route bus services in Williamsport and managing several other entities. The organisation owns significant properties in the area, including:
- Trade and Transit Centre I
- Trade and Transit Centre II
- Church Street Transportation Center
- Public Compressed Natural Gas (CNG) Fueling Facility
- Peter Herdic Transportation Museum
The financial misconduct allegedly led to significant repercussions for these entities and their operations. Nichols’s actions have drawn scrutiny and prompted the new River Valley Transit Authority to work closely with PennDOT to ensure compliance and restore trust.
Details of the Investigation
The investigation, led by Chief Deputy Attorney General Brian Zarallo, revealed a troubling pattern of financial abuse:
- Tampering with Records: Nichols is accused of falsifying financial data to obscure the misuse of public funds.
- Improper Financial Support: The grand jury found that Nichols used public funds to support the Hiawatha, a non-governmental entity, and authorised payments for employees through the city’s accounts rather than the Hiawatha’s.
Wiretap Controversy: A potential wiretap violation surfaced during the investigation. In a 2018 conversation, the mayor reportedly discussed Nichols’s control over city finances, which was recorded without consent. There is no evidence that Nichols used the funds for personal gain.
Legal Proceedings and Future Steps
Nichols has waived his preliminary hearing and was released on his own recognizance. He is scheduled for formal arraignment on November 8. The case continues to unfold as authorities seek to address the extensive financial misconduct and its impact on public trust and the operational integrity of River Valley Transit and associated organisations.
Upcoming Legal Events:
- Formal Arraignment: Scheduled for November 8.
- Ongoing Investigation: The investigation continues as prosecutors build their case against Nichols.
Impact and Implications for Williamsport
The allegations against Nichols have raised significant concerns about financial oversight and accountability in public institutions. As River Valley Transit works to rectify the situation and ensure compliance with PennDOT regulations, the broader implications for public sector financial management and transparency are evident.
Conclusion
The case against former Williamsport finance director William “Bill” Nichols Jr. underscores the critical importance of financial integrity and oversight in managing public funds. As the investigation progresses and legal proceedings continue, the focus remains on addressing the misconduct and restoring trust in the affected agencies.
