Cash News
SUN-GAZETTE File Photo
William E. Nichols, Jr. at the Trade and Transit Center II.
William “Bill” Nichols Jr., the former city finance director charged with felony counts related to theft by failure to make disposition of funds and tampering with public records, allegedly was responsible for a “tense” working environment.
Nichols is alleged to have used bullying and delaying answering questions as tactics to hide his activities. He forced employees to repeatedly fudge figures, according to a state attorney general’s investigation.
Among testimony heard by a state investigative grand jury in the case was from River Valley Transit employees who said they worked in a “tense environment” where manipulation, intimidation and yelling by Nichols were intrinsic to the culture.
RVT’s chief finance officer, who held the position since 2008, also served in that position for Endless Mountains Transportation Authority, the Williamsport Parking Authority and the Hiawatha, the riverboat paddlewheeler tourist attraction, which is under new management.
Under her position, she was responsible for general bookkeeping, as well as for state grant reporting and auditing. Although she kept the books, she said, everyone, regardless of his or her position, “answered to Nichols,” according to an affidavit by Special Agent Kevin M. Schofield.
“Glorified clerks,” was the term she referred to herself and other RVT personnel with meaningless job titles because nothing left the building without Nichols’ stamp of approval.
This was particularly emphasized whenever preparing financial records, such as the annual budget, and preparing state and federal transit grant applications.
“The grand jury heard testimony that Nichols would commonly instruct her to manipulate numbers as she saw fit,” the affidavit states.
‘Fudge-it’
The figures were altered with such regularity that the CFO and the RVT planning manager used the term “fudge-it” to describe RVT’s budget and finances.
The planning manager worked for RVT for 32 years until his resignation in January 2020, when Nichols was fired by incoming Mayor Derek Slaughter.
The planning manager was primarily responsible for submitting federal, state and local transit grant applications. The planning manager testified that Nichols was a difficult and demanding boss, particularly when he did not get his way.
Additionally, it was cited in the affidavit that it was incredibly difficult for the state Department of Transportation, the accountant assigned to the RVT audit, and his own employees, to obtain any meaningful answers from Nichols when he was questioned about the budget, finances or bookkeeping.
Nichols was described as affable and likable until he was being questioned or given an answer he did not like. Nichols’ alleged tactic was to avoid or ignore until someone would give up seeking an answer, according to the court document.
If that failed, he would “filibuster,” or give long-winded, confusing and almost nonsensical answers, the affidavit states. If none of that worked, he would become angry and intimidating, according to the employees’ testimony. Nichols rarely used email but rather preferred in-person or phone communication.
Chastised for raising ‘red flags’
The CFO recalled a time in which Nichols berated her for reaching out directly to a PennDOT employee with a question. She testified that he chastised her for raising “red flags” with the agency, and forbade her from direct communications with anyone at PennDOT.
The grand jury heard evidence that the accountant assigned to the audit of RVT from the early 2000s until 2020 found it difficult to work with Nichols. He often failed to show up, or was late, for meetings. He would take telephone calls during meetings and leave meetings shortly after they began. Similar delay tactics would be discussed with the grand jury regarding a former Deputy Secretary for Multimodal Transportation at PennDOT.
The woman referred to Nichols using a “bully technique,” whereby he would become aggressive when confronted with questions.
Another witness, the former Director of the Bureau of Public Transportation at PennDOT, also testified to the difficulties that she experienced when attempting to obtain answers from RVT. She recalled speaking directly to Nichols several times a year, and explained that Nichols reacted poorly, even yelled at her at times, if he felt his actions were being questioned or scrutinized.
Nichols faces charges of second degree felony count of theft by failure to make required disposition of funds and third degree felony county of tampering with public records.
The theft is alleged to have occurred between 2012 and 2020, where in his dual capacity as city finance director and RVT general manager, he utilized restricted grant funds which he knew were required to be used for transit purposes, and other city funds subject to spending restrictions, and instead intentionally used the funds on unauthorized, non-transit, expenses, projects and payments.
Furthermore, he allegedly knowingly provided false information on required grant expense reporting records to hide the unlawful use of transit grant funds and provided false records to the city when he knew the records would be given to and reviewed by government officials in the course of their official duties.
Wiretap violation alleged
The grand jury determined that Nichols recorded an in-person conversation with former Mayor Gabriel J. Campana without his consent.
A portion of the 40-minute call occurring in late August 2018 has the former mayor heard saying to Nichols, “…you have heard this for years, you control the finances,” to which Nichols responded, “I don’t control them, I just report them.”
Nichols’ formal arraignment is 8:30 a.m. Nov. 8 in Dauphin County Court. He has been released on his own recognizance. The case is being prosecuted by Chief Deputy Attorney General Brian Zarallo.